Beleaguered crypto exchange, Zipmex, filed applications in Singapore seeking protection against bankruptcy amid threats of legal action from creditors, according to a Zipmex moratorium. 

Zipmex’s solicitors, Morgan Lewis Stamford, submitted moratorium applications for all Zipmex entities on July 22, which will help them with legal proceedings for the next six months. 

The Singapore-based exchange confirmed that they will continue to operate the Trade Wallet, NFT platform, and other products as normal, but will keep a halt on their Z Wallet. Both of their wallets were paused on July 20, with the Trade Wallet resuming activity just two days later. However, the Z Wallet is still paused until further notice. 

“This helps protect Zipmex against third party actions, claims, and proceedings while it is active, and enables the team to focus all our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while we are doing so,” the moratorium said. 

This announcement comes less than a week after a report surfaced claiming Zipmex was seeking $50 million to repair their balance sheet, which roughly equals the money Zipmex’s combined exposures to Babel and Celsius at $53 million. 

The moratorium noted that under Singapore law, companies are automatically granted a moratorium for a period of 30 days, or until the Singapore Court makes a decision on the application, whichever is earlier. 

The moratoriums filed cover five Zipmex entities: Zipmex Asia Pte. Ltd., Zipmex Pte. Ltd., Zipmex Company Ltd. (incorporated in Thailand), PT Zipmex Exchange Indonesia and Zipmex Australia Pty. Ltd. 

Author: Tyler Irvin