Zipmex, Asia’s largest digital asset exchange, announced that it has been granted creditor protection by the Singapore High Court for over three months. This allows Zipmex to take care of liquidity issues.
ZipmexX stopped cryptocurrency withdrawals July 21. They cited the possibility that the assets of the exchange could be taken over by the financial crisis facing Celsius Network or cryptocurrency lender Babel Finance.
Some cryptocurrencies, such as Solana and Ripple’s XRP (SOL), and Cardano’s ADA (ADA), have resumed withdrawals via Zipmex trading wallets. But mainstream coins, including Bitcoin Ether and Ether remain locked.
The company filed five requests for creditor protection on July 27. This gave it six months to restructure debt.
Bloomberg reports that five Zipmex businesses have been ordered by the Singapore High Court to have a debt suspension until Dec. 2. This will protect them from any potential creditor lawsuits.
A court order has granted them a three-month extension in their legal action. This will stop their creditors starting or continuing any legal proceedings.
Judge ruled that the company should negotiate with the creditor group and hold a meeting.
Currently, lenders are conducting due diligence in the exploratory phase while court proceedings take place behind the scenes.
Zipmex is an Australian company with operations in Singapore, Thailand and Indonesia. It has been in court for six month of bankruptcy protection in order to investigate its restructuring options.
The Thailand-based cryptocurrency trading platform has not been the only one to suspend trading in Singapore.
As Vauld continues to look for ways to repay its creditors, the Singapore High Court extended Vauld’s three-month extension to August.
Vault requested a six-month moratorium from the court to allow the company to prepare for its restructuring and eventual acquisition by Nexo.
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