Another crypto bankruptcy declaration is in the books. After several consecutive weeks of downtrends and companies liquidated or forced to declare bankruptcy, another company appears to have fallen victim to the meltdown that traders have experienced over the past eight months. This time, the company that declared bankruptcy is Zip Mex, a Cryptocurrency exchange in Singapore It mainly operates in Southeast Asia.
Mix zip not working well
The proceedings were done through Morgan Lewis Stamford, one of the company’s lead attorneys, via Singapore’s insolvency law. Morgan Lewis initially sought to stop legal proceedings relating to Zip Mex and several of its entities, which were present at the time of writing in regions such as Indonesia, Australia and Thailand.
With the new bankruptcy filing, it appears that these stays can be put in place for about 30 days. This means that for about a month, Zip Mex is officially protected from individuals who are willing to go to great lengths to get their money back. As it stands, the exchange will likely be out of commission for some time, though Zip Mex has commented on the non-fungible tokens (NFT) market, its trading portfolio and many other products will operate “as usual” without interruption.
July 20 also saw a temporary ban on withdrawals, although this expired after a few days. The company said in a statement:
As we continue to work towards resolving our liquidity position and re-enable Z Wallet for all users, we would like to update our users last Friday on the submission of stop-off requests in Singapore for all Zip Mex entities. This helps protect Zip Mex from actions, claims, and actions taken by the third party in the course of its activity and enables the team to focus all efforts on resolving the liquidity situation without having to worry about defending potential claims or adverse actions while we do so… Breathing space and time to explore options for resolving a liquidity position [including to pursue the recovery against Babel Finance]formulating a restructuring plan and securing additional investments to secure Zip Mex Group operations going forward.
This news comes on the heels of several other headlines about crypto companies filing for bankruptcy. One of the latest examples comes in the form of Celsius Network, a crypto-lending platform that initially struck negative chords when it announced that it had indefinitely suspended all customer withdrawals months ago.
Why did the degree Celsius drop?
Celsius board members explained:
Today’s deposit comes on the heels of Celsius’ difficult but necessary decision last month to temporarily pause withdrawals, swaps and transfers on its platform to stabilize its business and protect its customers. Without pause, accelerating withdrawals would have allowed some clients — those who were the first to act — to pay their full wages while leaving others behind to wait for a percentage value from illiquid or long-term asset spread activities before they could get a recovery.
#Zip #Mex #Singaporebased #cryptocurrency #exchange #bankrupt