Zipmex Files For 6-Month Moratorium Extension To Stall Legal Actions

Summary:

  • Crypto exchange Zipmex has moved to delay creditors in Singapore from pursuing legal actions against the platform.
  • The trading service filed five separate moratorium applications to this effect.
  • Moratoriums of this nature usually give a 30-day extension but the exchange is after a 6-month extension.
  • The crypto exchange supposedly requires time to address its liquidity gridlock.
  • Withdrawals on the platform were halted citing financial difficulties but later resumed operations on its trading wallet.
  • The platform’s main wallet, Z wallet, remains suspended.
  • The digital asset exchange also has a multi-million dollar exposure to embattle crypto lenders Babel Finance and Celsius. 

Zipmex, a major cryptocurrency exchange in Southeast Asia, filed several moratorium applications in a bid to stall creditors in Singapore who might seek legal action against the platform amid liquidity difficulties.

As EthereumWorldNews reported, the platform paused withdrawals due to financial difficulties. Operations later resumed on the trading wallet feature for users, while the Z wallet remains suspended till further notice.

📣 Important Announcement📣

Maintenance on the Trade Wallet has ended. Withdrawals for your Trade Wallet are now enabled as of 22 July 2022 at 18:00 (GMT+7).

Transfer from Z Wallet, deposit and trade will continue to be disabled until further notice. pic.twitter.com/voMInELlH5

The Southeast Asian firm shared a statement this week informing users of five applications filed on behalf of all its entities including Zipmex Asia Pte Ltd, Zipmex Pte Ltd, and Zipmex Company Limited (incorporated in Thailand).

Solicitors from Morgan Lewis Stamford LLC handled the process, per the statement. Moratoriums were filed under Section 64 of Singapore’s 2018 Insolvency, Restructuring, and Dissolution Act.

The provisions of this policy issue a 30-day extension upon filing in any case. However, the crypto exchange reportedly requested up to six months in a bid to slow down creditors from starting a legal battle.

Also, the statement said that the application would allow the platform to figure out the liquidity crisis and pursue recovery against Babel Finance. 

This helps protect Zipmex against third-party actions, claims, and proceedings while it is active, and enables the team to focus all our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while we are doing so.

Zipmex Liquidity Bottleneck Triggered By Babel And Celsius Exposure 

As previously reported, the crypto exchange disclosed a $48 million exposure to crypto lender Babel Finance. The firm also reported issues with liquidity as contagion spread through the industry following the collapse of Terra. 

Exposure to insolvent crypto firm Celsius was revealed as well, per reports. 

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