The cryptocurrency trading platform Zipmex has initiated the bankruptcy process in Singapore. As the corporation works to remedy its financial concerns, it has requested that the moratorium be lifted for five of its companies. In Singapore, Zipmex is the latest cryptocurrency business to seek bankruptcy protection due to financial difficulties. Zipmex made an announcement on July 22 stating that its legal representatives had submitted five petitions in accordance with Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018 on behalf of several of the Zipmex Group’s enterprises.
Zipmex is going to keep running its Trade Wallet, NFT platform, and other products, so customers shouldn’t anticipate any disruptions in their service from the company. The exchange has decided to make the filing in an effort to overcome its liquidity concerns and re-enable its Z wallet, which is why the exchange has decided to implement the moratorium. The announcement on the filing reads:
“This helps 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 without having to worry about defending potential claims or adverse actions while we are doing so. It is important to note that a moratorium is not a liquidation of any company, and there is no significant status change from our last update.“
Companies such as Zipmex Asia Pte Ltd, Zipmex Pte Ltd, Zipmex Company Limited of Thailand, PT Zipmex Exchange Indonesia, and Zipmex Australia Pty Ltd are among those petitioning for some form of relief at this time. These businesses are entitled to an automatic moratorium under Singapore law for a period of thirty days or until the court renders a ruling, whichever comes first.
Crypto Businesses Under Tremendous Financial Stress
The market crash has not been kind to cryptocurrency enterprises, as evidenced by the fact that numerous of them have suspended withdrawals, are dealing with liquidity concerns, or, in the most extreme situations, have filed for bankruptcy. Two of the most notable companies to suffer significant losses as a result of the crypto winter are Celsius Network and Three Arrows Capital. Not to mention Terraform Labs, which is also dealing with significant legal issues.
As a result of the domino effect caused by the bear market, crypto companies will proceed with a more cautious approach moving forward. This is because the bear market had an influence on several companies that are related to each other. Although the cryptocurrency market has previously been plagued by problems of this nature, the current degree of adoption and scale makes the situation particularly difficult for the market.
Zipmex & Crypto Space Way Forward
There is still reason for optimism in the cryptocurrency market, despite the fact that the bear market has dashed any chances of reaching new highs in the next months. Both institutional and individual investors, including retail investors, continue to have a positive outlook on the medium- to long-term future. This has contributed to a general impression of tenacity. It is possible that there may be challenges in the short term, the majority of which will be caused by the implementation of new crypto legislation. According to a recent forecast by the Boston Consulting Group, there may be as many as one billion users of cryptocurrencies by the year 2030. The company stated that the cryptocurrency business is comparable to the early stages of the internet and that there is a significant amount of room for expansion.
