Zipmex, which is a famous cryptocurrency exchange from Southeast Asia, filed for bankruptcy in Singapore. After this recent event, the crypto platform has become yet another victim in the growing list of bankrupted crypto companies. This downturn could be attributed to the bearish trend in digital currencies.
On 20th July, Zipmex exchange suspended withdrawals only to resume them recently. The company said that it is working to handle its $53 million exposure to Celsius and Babel Finance.
The solicitors representing Zipmex filed a total of five applications in July. The company wanted to stop any legal proceedings against it for at least 6 months.
According to the law of Singapore, this could allow the company to get an automatic moratorium for at least 30 days. This duration can even be further extended until a decision is made by the Singapore Court.
Zipmex Is a Victim Of TerraUSD & Luna
Zipmex has become yet another victim of the collapse of two popular tokens known as TerraUSD and the Luna. The company was quite popular in Australia, India, Thailand, and Singapore, but after filing for bankruptcy, it seems that the company has finished its run.
In fact, the sharp sell-off and almost crash of the TerraUSD and the Luna sent aftershocks to the entire crypto market. As a result, a hedgefund along with various other crypto firms, faced financial difficulties & many even filed for bankruptcy.
In Thailand, the relevant authorities stated that they are working with the law enforcement agencies to check the extent of losses from the Zipmex withdrawal suspension.
After this move by Zipmex and the fall of the Three Arrows Capital hedge fund, the cryptocurrency sector of the Singapore and several other countries were shaken heavily.
After the fall of Zipmex, many are wondering whether this will start a chain reaction of bankruptcy filing among crypto firms or not.