Thai cryptocurrency exchange Zipmex has filed a petition with a Singapore court for protection from creditors. According to the country’s legislation, the moratorium will take effect automatically for 30 days.
On July 22, the law firm Morgan Lewis Stamford filed five related filings on behalf of several exchange-related entities.
Top management intends to achieve an extension of the moratorium for up to six months to prevent lawsuits from creditors. A similar step was taken by managing the crypto lending platform Vauld (the debt is $402 million).
The platform has faced liquidity shortages following issues with partners Babel Finance and Celsius Network. Their liabilities are $5 million and $48 million, respectively.
“The moratoriums will give the Zipmex Group the breathing room and time it needs to explore options for resolving the situation. In particular, for a refund from Babel Finance. It is also necessary to develop a restructuring plan and attract additional investment,” the company said.
Representatives of the exchange reported the interest of unnamed parties in potential investments. They added that negotiations are at an “advanced stage.”
Recall that on July 20, Zipmex suspended the withdrawal of funds, citing “unstable market conditions and the resulting financial difficulties of key business partners.”
A few days later, the platform partially resumed deposits and withdrawals.