The latest casualty of the global decline in digital currencies is the cryptocurrency exchange Zipmex, which has its focus on Southeast Asia. Zipmex announced that it had filed for bankruptcy protection in Singapore.
The Singapore-based Zipmex company said it was working to address its $53 million exposure to cryptocurrency lenders Babel Finance and Celsius when it resumed withdrawals last week, a day after it had suspended them on July 20.
The cryptocurrency exchange said on Wednesday that five applications for moratoriums to stop legal actions against Zipmex for up to six months were submitted on July 22 by Zipmex’s attorneys.
According to Singaporean law, such a filing gives businesses a 30-day automatic moratorium, or until a Singapore Court rules on the application, whichever comes first.
According to its website, Zipmex operates in Singapore, Thailand, Indonesia, and Australia. Zipmex is the most recent cryptocurrency player to experience problems as a result of a severe market sell-off that began in May with the collapse of two paired tokens, Luna and TerraUSD.
Following Zipmex’s temporary suspension of withdrawals, Thailand’s Securities and Exchange Commission declared on Monday that it was collaborating with law enforcement to investigate any potential losses suffered by the general public.
The recent collapse of cryptocurrency fund Three Arrows Capital has also shaken Singapore’s ambitious cryptocurrency industry, which is by some estimations the largest in Asia-Pacific.
