In a document dated Wednesday, July 27, Thai cryptocurrency exchange Zipmex said its lawyers in Singapore, Morgan Lewis Stamford LLC, had filed five requests for a moratorium, or legal permission for debtors to defer payment, under of Section 64 of the Singapore Insolvency, Restructuring and Dissolution Act. 2018 on behalf of the company. Zipmex seeks protection against third party actions, claims and proceedings for a period of six months while the filing is active. The announcement came just a week after its CEO and co-founder Marcus Lim publicly denied that the company was facing financial problems. Rumors have swirled over the past month that the cryptocurrency exchange was insolvent after a failed acquisition by Coinbase.
Additionally, Zipmex already filed for credit relief last Friday, but did not disclose the deed until Wednesday. All of its subsidiaries, consisting of Zipmex Asia Pte Lt, Zipmex Pte Ltd, Zipmex Company Limited, PT Zipmex Exchange Indonesia and Zipmex Australia Pty Ltd, were included in the filing. Additionally, Zipmex says a case conference regarding the filing was scheduled for 4 p.m. UTC on Friday, and creditors had just until the 10 a.m. Thursday deadline to notify attorneys that they wished to attend.
It seems like Zipmex’s fortunes got worse after the collapse of Hong Kong-based crypto lender Babel Finance. As Zipmex said:
“The moratoriums would give the Zipmex Group the breathing space and time it needs to explore options to resolve the liquidity situation (including to pursue the turnaround against Babel Finance), and to formulate a restructuring plan and secure additional investments. to secure the operations of the Zipmex Group. move forward.”
Zipmex says it is at an advanced stage of securing new investments to relive its liquidity crunch. Currently, the Securities and Exchange Commission of Thailand is asking affected investors to register complaints against the company on its official website.
Editor’s Note: The article has been updated to reflect that Zipmex has filed for moratorium, but is not in bankruptcy proceedings.