Southeast Asia-focused cryptocurrency exchange Zipmex said it had filed for bankruptcy protection in Singapore, becoming the latest victim of a global slowdown in digital currencies.
Singapore-based Zipmex resumed withdrawals last week, a day after it was suspended on July 20, and said it was working to address its $53 million exposure to crypto lenders Babel Finance and Celsius.
The cryptocurrency exchange said on Wednesday that lawyers for Zipmex submitted five applications on July 22 seeking an adjournment of legal proceedings against Zipmex by six months.
Under Singapore law, such filing gives companies an automatic adjournment of 30 days or until a Singapore Court decides on the application, whichever is earlier.
Zipmex, which operates in Singapore, Thailand, Indonesia and Australia according to its website, is the latest in a string of crypto players globally following a sharp sell-off in markets that began with the collapse of the two paired tokens in May. Luna and TeraUSD.
Thailand’s Securities and Exchange Commission said on Monday it was working with law enforcement to look into potential harms to the public after Zipmex temporarily suspended withdrawals.
Singapore’s ambitious cryptocurrency sector, Asia-Pacific’s largest by some measures, has also been shaken by the recent collapse of crypto fund Three Arrows Capital.