Cryptocurrency exchange Zipmex has filed applications under Section 64 of Singapore's Insolvency, Restructuring and Dissolution Act after blocking customer withdrawals in the week ended July 22. Moreover, the company's Singapore-based solicitors, Morgan Lewis Stemford, filed five applications on behalf of its subsidiary entities, including Zipmex Asia Pte, Zipmex Pte, Zipmex Company Limited, PT Zipmex Exchange Indonesia and Zipmex Australia Pty, according to a blog post dated July 27. Under Singapore law, the entities have been granted an automatic moratorium for either 30 days or until the Singapore court decides what to do with the applications. "The moratoriums would give the Zipmex Group the breathing space and time it requires to explore options to resolve the liquidity situation (including to pursue the recovery against Babel Finance), and to formulate a restructuring plan and secure additional investment to secure the Zipmex Group’s operations moving forward," the blog read. Zipmex added that a case conference about the filing has been scheduled for July 29 at 4:00 p.m. UTC (12:00 p.m. ET). The move to file for protection against creditors comes after Zipmex last week disclosed loan exposure worth a total of $53M to Babel Finance and Celsius, both of which are struggling due to liquidity issues. Earlier this week, (July 25) Zipmex received an investment proposal from an interested party.
