Crypto platform Zipmex files for bankruptcy protection in Singapore

Representations of cryptocurrencies in this illustration taken January 24, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

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July 29 (Reuters) – Southeast Asia-focused cryptocurrency exchange Zipmex said it had filed for bankruptcy protection in Singapore, becoming the latest victim of the global slowdown in trading. digital currencies.

Singapore-based Zipmex resumed withdrawals last week, a day after suspending them on July 20, and said it was working to address its $53 million exposure to crypto lenders Babel Finance and Celsius. .

Zipmex’s attorneys submitted five motions on July 22 seeking moratoriums to bar legal action against Zipmex for up to six months, the cryptocurrency exchange said Wednesday.

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Under Singapore law, such a filing grants companies an automatic 30-day moratorium, or until a Singapore court issues a decision on the claim, whichever comes first.

Zipmex, which operates in Singapore, Thailand, Indonesia and Australia according to its website, is the latest in a string of crypto players around the world to struggle following a sharp sell-off in the markets that has started in May with the collapse of two paired tokens, Luna and TerraUSD.

Thai Securities and Exchange Commission said monday he was working with law enforcement to review potential losses among the public after Zipmex temporarily suspended withdrawals.

Singapore’s ambitious cryptocurrency sector, the largest in Asia Pacific in some ways, has also been shaken by the recent collapse of crypto fund Three Arrows Capital. Read more

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Reporting by Hazra Nivedita and Akriti Sharma in Bengaluru; Editing by Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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