Singapore Court Grants Zipmex Three-Month Creditor Protection

Asia cryptocurrency exchange Zipmex Pte Ltd was granted more than three months of protection from creditors by Singapore’s High Court, giving the troubled firm breathing room to come up with a funding plan, Bloomberg News reported. Justice Aedit Abdullah gave each of the five Zipmex entities a moratorium until Dec. 2. That will shield the companies from potential creditor lawsuits. The firm operates out of Singapore, Thailand, Indonesia and Australia and was seeking a five-month protection from creditors to form a restructuring plan. The trading platform ran into a cash crunch after its exposure to crypto lender Babel Finance soured. Zipmex recently allowed partial withdrawals after shutting them down late last month. Zipmex’s moratorium comes after a decision earlier this month by Justice Abdullah to grant the parent company of Vauld, another crypto firm with local operations, a three-month protection from creditors. Vauld, a distressed crypto lender, announced in July that it was freezing withdrawals, adding to a series of high-profile crypto collapses. Hodlnaut, another crypto lender with Singapore operations, has also halted withdrawals. A slew of digital-asset companies worldwide have been hit by a rout in the crypto sector this year that’s only just begun to stabilise. Crypto lending — where promises of yields above 10% weren’t uncommon — came under strain after the TerraUSD stablecoin collapsed and the Three Arrows Capital hedge fund unraveled. Read more.