On behalf of five of its entities, Asia Pacific’s leading digital assets exchange platform Zipmex recently lodged a number of petitions for moratoria under Section 64 of Singapore’s Insolvency, Restructuring and Dissolution Act 2018.
For a specific time, moratorium relief protects debtors from creditors’ legal action. The time limit provides the debtor more time to consider their alternatives, such as declaring bankruptcy, executing a trust deed, or coming up with a debt repayment plan.
Zipmex stated in its official statement that the company is looking for protection from the actions and claims of its creditors for a maximum of six months. The business stated that it planned to continue providing customer service and that the debt relief period would enable its team to concentrate on finding a solution to its liquidity problems. The announcement reads:
“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 worrying about defending potential claims or adverse actions while we are doing so.”
Thailand SEC’s letter to Zipmex
Meanwhile, a local media report revealed that Thailand’s Securities and Exchange Commission had sent a letter to Zipmex, demanding that the company clarify the reason behind applying for moratorium relief in a Singapore court. SEC also invited creditors to attend the hearing on Friday.
When Zipmex abruptly stopped offering withdrawal services on July 20 due to market turbulence and financial issues with its partners, things started becoming really bad. The company resumed withdrawals that day, but the SEC in Thailand became aware of it.
Following the suspension of withdrawals, the regulator wanted information from the exchange about why some services had been suspended and whether it had any connections to struggling cryptocurrency lenders Celsius and Babel Finance.
In January, as TheCoinRise reported, Zipmex obtained approval from Thailand authorities to provide crypto exchange services in the country.