Cryptocurrency exchange Zipmex files to protect against bankruptcy
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Cryptocurrency exchange Zipmex files to protect against bankruptcy

The ongoing crisis of the cryptocurrency market has hit another of its participants. Singapore-based cryptocurrency exchange Zipmex announced Wednesday that it has requested a moratorium on payments to five commercial entities. The moratorium protects it from lawsuits or litigation for up to six months, the company said.

    Image source: Kanchanara/unsplash.com

Image source: Kanchanara/unsplash.com

According to the company, there will be the move “recovery and the time it takes» to examine possible options to solve liquidity problems, to develop a restructuring plan and to secure additional investments to continue the activities.

Zipmex faced liquidity problems and was forced to suspend payouts last Thursday. The company blames two cryptocurrency finance companies, Babel Finance and Celsius Network. Hong Kong-based Babel Finance owes $48 million to Zipmex and $5 million to Celsius, which has filed for bankruptcy in New York.

According to Forbes, the crypto exchange is facing an investigation by Thailand’s Securities and Exchange Commission, which said on Monday it was looking into possible losses for investors following the suspension of Zipmex withdrawals.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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