Zipmex Has Filed For Safety Against Creditors Regarding Liquidity

Zipmex Has Filed For Safety Against Creditors Regarding Liquidity. After experiencing liquidity issues for some time, the Thai exchange firm has finally announced that they have filed for a moratorium to protect themselves against creditors.

The Moratorium

Zipmex announced that they are currently working on the liquidity situation by filing for a moratorium application in Singapore for all Zipmex entities last Friday, including Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Zipmex Company Limited (incorporated in Thailand), PT Zipmex Exchange Indonesia, and Zipmex Australia Pty Ltd. 

The moratorium, designed to give debtors protection from any legal actions by creditors, is said to “help protect Zipmex against third-party actions, claims, and proceedings while it is active and enables the team to focus all our efforts on resolving the liquidity situation.“

Zipmex explains in their application that they are seeking global moratoriums to restrain proceedings for up to six months, and emphasizes that the moratorium “is not a liquidation of any company.”

Under Singapore Law, they have been “granted an automatic moratorium for a period of either (i) 30 days, or (ii) until the Singapore Court decides the Applications.”

Leading Up To The Moratorium

Previously, Zipmex halted all withdrawals on their platform earlier this July due to market conditions, however, quickly resumed withdrawals only a few days later. Aside from that, not long ago, Zipmex had posted on their Twitter about their exposure to Babel and Celsius for $48M and $5M, respectively.

On the 24th of July, the Thai exchange firm also posted on their Twitter explaining that they are close to a deal with a potential investor. 

📢 Important Announcement 📢
Our conversations with various interested parties have progressed significantly. One of those parties has offered terms in an MOU which includes confidentiality obligations so as to be able to commence Due Diligence. #zipmex

— ZIPMEX (@zipmex) July 24, 2022

This could hint that the reason why Zipmex had filed for moratorium in the first place was to buy time for themselves from having to pay back debts while they and their potential investor work towards a deal that can help them earn back liquidity for the time being. 

Related: Updates: Zipmex Crypto Exchange Regarding the Withdrawal Issues

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