Zipmex has finally been granted a three month creditor protection from the Singapore court
Per a Bloomberg report, the court’s decision will be instrumental in guarding the firm against third-party lawsuits and claims, enabling the exchange to come up with a useful funding plan.
Asian cryptocurrency exchange Zipmex was granted three-month creditor protection by the Singapore court, enabling the firm to devise an effective funding plan.
Per a recently released Bloomberg report, Zipmex was earlier seeking five-month court protection to safeguard itself from potential creditors’ lawsuits.
The firm had earlier announced its decision to halt transactions on the platform after citing “volatile market conditions, and the resulting financial difficulties of our key business partners.”
Singapore Court Grants Three-Month Court Protection To Zipmex
According to Bloomberg, the leading cryptocurrency exchange Zipmex was granted three-month credit court protection by the Singapore court.
The court’s decision will protect the firm from any potential lawsuits that may stem due to its abrupt decision to halt consumer withdrawals and transactions on its exchange, announced earlier this month. The report further adds that Zipmex was initially seeking five-month creditor protection to come up with an effective funding plan.
Per Bloomberg, Justice Aedit Abdullah has given each of Zipmex entities a moratorium till December 2, 2022. A moratorium refers to a legally authorized period of delay that grants debtors a chance to postpone their payments to creditors and pay them at a later date which is decided by the court.
The following decision will permit the firm to formulate an effective funding plan, alongside brainstorming ideas to restructure its financial strategies to pay back its creditors in due time.
Zipmex landed itself in troubled waters when the firm announced its decision to halt consumer transactions earlier this month. The firm joined the growing list of exchanges and entities that had abruptly suspended crypto transactions in light of ongoing bearish market momentum. Apart from Zipmex, leading crypto platforms such as Celsius Network and Babel Finance had also succumbed to the harsh crypto winter after announcing their decision to suspend withdrawals. Both firms are now exploring restructuring options to pay their creditors.
In addition to this, another troubled crypto lender Vauld had also received a similar moratorium to resolve its liquidity crisis and devise a practical funding plan.
Founded in 2018, Zipmex is a digital asset exchange that provides digital access to wealth-generating assets for the mass market. The exchange operates out of Indonesia, Singapore, Thailand, and Australia. The firm announced its decision to suspend withdrawals on July 20, inviting a whirlwind of attention from its customers across the regions.