Move into the crisis: crypto exchange Zipmex tries to save itself from bankruptcy | 08/12/22

• The crypto exchange ran into difficulties due to the bankruptcies of the lenders
• Zipmex strives for transparency and rejects possible insolvency
• Talks are underway with major investors

Crypto exchange Zipmex is directly involved in the crash through its combined $53 million investments in crypto lenders Babel Finance ($48 million) and Celsius ($5 million). According to reports from Cointelegraph, a takeover of crypto exchange Coinbase recently failed.

On July 22, Zipmex filed a moratorium motion to delay potential lawsuits against the crypto exchange for up to six months. In the statement on the Zipmex website, those responsible address the company’s current problems and the most pressing questions. First of all, it is emphasized that efforts are being made to ensure transparency in the current difficult situation. Reports of the bankruptcy of the company or the individual subsidiaries are incorrect. However, Zipmex has temporarily suspended payments.

How did the current problems with Zipmex arise?

The insolvency of cryptolender Celsius and the liquidity problems at Babel Finance also hit Zipmex hard: Since June 13, a day before the bankruptcy filing, no more withdrawals could be made at Celsius. At the time, talks with Babel Finance were still optimistic. However, it quickly became apparent that the operation could not be maintained with Babel either. According to its own statements, Zipmex then notified the Thai stock exchange regulator and informed them of the deposits in Celsius and Babel.

The procedure for applying for a debt moratorium

Zimpex emphasizes that the moratorium application to the authorities in Singapore should not be equated with an insolvency petition. Rather, the intention is to set aside time to find suitable solutions. This also has no impact on the activity on the crypto exchange or the markets. The application will be heard in court on August 15, and creditors can submit applications by August 12 at the latest.

“The company hereby declares that it does not intend to conceal any facts and that everything is being done in accordance with the legal process. As soon as there is progress, the company will inform all customers, media and relevant parties.”

What’s Next for Cryptocurrencies at Zipmex?

Zimpex continues to try to recover Babel Finance’s stored crypto assets while launching a funding round to re-enable Z Wallet transfers. The company is currently in negotiations with several major investors and has signed a memorandum of agreement (MOU) with two of them. Due diligence should be done as soon as possible because time is of the essence. Additional investments in native Zipmex Token (ZMT) were made by a long-time Zimpex investor. The further development of the ZMT token is according to plan.

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At the request of the Thai exchange regulator, Zipmex will gradually release the unaffected cryptocurrencies Cardano, Solana and Ripple. In this way, tokens from the trade wallet can be credited and withdrawn again. Coins such as Bitcoin and Ethereum are also due to be released again in mid-August after a stabilization phase. On its website, the Thai stock exchange regulator is now calling on affected investors to file a lawsuit.

Editor finanzen.ch

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