Crypto exchange Zipmex goes to court to protect itself from creditors
The lawyers at Morgan Lewis Stamford intend to achieve a moratorium for up to six months while the company develops a restructuring plan
29.07.2022 - 14:40
707
2 min
0
What’s new? On July 22, Asian cryptocurrency exchange Zipmex filed applications with a court in Singapore on behalf of five of its organizations to impose a moratorium on proceedings with creditors. The lawyers at Morgan Lewis Stamford intend to achieve a ban on making lawsuits by borrowers for up to six months while the exchange develops a restructuring plan.
What do the exchange’s representatives say? Zipmex noted that the six-month moratorium will give time to develop a restructuring plan and raise additional investments, as well as to recover funds from the crypto lender Babel Finance, which had $48 million in claims as of July 21. Another $5 million is owed to the exchange by Celsius Network, a bankrupt DeFi platform, but Zipmex intends to write off that debt.
What is going on with Zipmex? On July 20, the exchange suspended withdrawals, citing “volatile market conditions, and the resulting financial difficulties of our key business partners.” The very next day, it resumed deposit and withdrawal functions, but trading on the platform is unavailable. On July 24, Zipmex received an offer to save the business from an anonymous person. The company did not name its negotiating partner and did not specify whether the offer involved an investment in the platform or its buyout.
Following the suspension of withdrawals, representatives of Vauld, a lending platform, also asked a Singapore court to impose a six-month moratorium on proceedings while the company explores ways to restructure in connection with bankruptcy. Vauld owes creditors a total of $402 million.
Useful material?
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024