Singapore based Zipmex has filed for insolvency under Singapore law. According to a blog post, Zipmex attorneys have filed five applications under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 on behalf of several of the firm’s entities, aiming to gain global moratoriums to prohibit the commencement or of proceedings against the companies for a period of up to six months.
Zipmex is a smaller crypto exchange currently ranked #233 by Coinmarketcap. Like some other crypto platforms, the heightened volatility in crypto markets, exacerbated by several bankruptcies and the collapse of TerraUSD/LUNA, Zipmex has struggled to keep operations going.
On July 20th, Zipmex announced via Twitter it was suspending withdrawals until further notice.
Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.
— ZIPMEX (@zipmex) July 20, 2022
The next day, Zipmex said they were halting trading and expanding their “maintenance period.” On July 23rd, Zipmex reported they had received an MOU for a possible capital injection. On July 24th, Zipmax claimed it had signed its first MOU which was soon followed by another on July 27th, An “initial deposit” was made by the investor to as an indicator of interest.
“There’s still work to do, and we’re busy rebuilding a more robust and ultimately stronger company. We want to thank every one of our users, investors, and supporters for being patient and backing us up as we take Zipmex into the next stage of the company’s evolution,” stated the company.
With a moratorium in place, and actions against firms that owe Zipmex money, Zipmex reports that it is working on restructuring plans.
Zipmex is perhaps more isolated from the global crypto contagion as it operates only in Singapore, Thailand, Indonesia and Australia, and its small size means potential investors may not have to commit too much capital to reanimate the trading platform. As it appears today, the company is charting a path to recapitalize and resolve its financial challenges.
At one point, the Monetary Authority of Singapore gave Zipmex an exemption, for 6 months, for providing digital payment token services. Zipmex would be required to submit an application for a license within that time frame.
