Zipmex files for protection against creditors in Singapore

Quick Take

  • Embattled crypto exchange Zipmex is seeking a moratorium extension to prevent creditor legal action.
  • The exchange is currently facing a liquidity crunch due to its exposure to troubled crypto firms Babel Finance and Celsius.

Troubled South Asian crypto exchange Zipmex has filed for protection against creditors in Singapore as it faces a liquidity crunch.

Announcing the news on Wednesday, Zipmex said its solicitors Morgan Lewis Stamford LLC filed five moratorium applications under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 on behalf of several of its entities on July 22.

Under Singapore law, an automatic moratorium for 30 days arises upon filing the application. The Zipmex Group is now seeking a moratorium extension of up to six months to prohibit and restrain the commencement or continuation of legal proceedings against it.

Zipmex's move is similar to Vauld, the beleaguered Asian crypto lender that abruptly halted client withdrawals earlier this month and owes over $400 million to creditors.

As for Zipmex, the exchange halted and resumed certain withdrawals earlier this month but is currently working towards resolving its liquidity situation and re-enabling the Z Wallet for all users. The Z Wallet is t