After Weeks of Rumors, Thai Crypto Exchange Zipmex Files for Singapore Debt Relief

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In a document dated Wednesday, July 27, Thai cryptocurrency exchange Zipmex said its lawyers in Singapore, Morgan Lewis Stamford LLC, have filed five moratorium applications or legal authorization for debtors to defer payment, under section 64 of the Singapore Insolvency, Restructuring and Dissolution Act 2018 on behalf of the company. Zipmex attempts to protect itself from third party actions, claims and proceedings for a period of six months while the filing is active. The announcement came just a week after CEO and co-founder Marcus Lim publicly denied that the company was experiencing financial difficulties. For the past month, rumors have circulated that the cryptocurrency exchange was insolvent after a proposed acquisition by Coinbase fell through.

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In addition, Zipmex already applied for credit relief last Friday, but did not announce the deal until Wednesday. All 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 application. Further, Zipmex says a case conference on the filing is scheduled for Friday, 4 p.m. UTC and creditors had just until the 10 a.m. TBEN Thursday to let attorneys know they wanted to participate.

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It seems Zipmex’s fate took a turn for the worse after the collapse of Hong Kong-based cryptocurrency lender Babel Finance. As told by Zipmex:

“The moratoriums would give the Zipmex Group the breathing room and time it needs to explore options to resolve the liquidity situation (including to continue the recovery against Babel Finance), and to formulate a restructuring plan and make additional investments.” to secure the operations of the Zipmex Group. move forward.”

Zipmex claims it is well advanced in securing new investments to relive the liquidity crisis. Currently, the Thai Securities and Exchange Commission is asking affected investors to register complaints against the company on its official site.

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Editor’s Note: The article was updated to reflect that Zipmex has filed a moratorium but is not in bankruptcy proceedings.