The Singapore High Court has given Zimplex crypto exchange a three months moratorium extension to resolve its liquidity issues.
Zimplex, a leading South Asian crypto exchange, has been going through tough times that resulted in an abrupt halting of client withdrawals last month before allowing limited withdrawals a week later. The exchange later filed for bankruptcy protection in Singapore seeking protection from creditors.
In its petition, Zipmex Group was requesting a six-month moratorium extension for its five entities: Zipmex Asia, Zipmex, Zipmex Thailand, Zipmex Australia, and Zipmex Indonesia to avoid any potential creditor lawsuits. However, the court has granted it just over three months to address its liquidity issues. The extension was extended to December 2.
Zimplex joins Vauld, which like Zimplex had halted withdrawals in July and received a three months moratorium extension earlier this month from the Singapore High Court.
Zimplex’s liquidity crisis
Zimplex liquidity crisis was triggered by its exposure to Celcius and Babel Finance, two crypto lenders that have been on the verge of insolvency. Both Celsius and Babel Finance have halted withdrawals to date.
Zimplex is currently working on resolving its financial crisis in the hope of re-enabling fund transfers between its Trade and Z wallets soon. In particular, Zimplex is presently seeking to raise funds and it recently said it signed a memorandum of understanding with two investors.
The Z wallet from which clients are currently not allowed to withdraw assets allows users to use the ZipUp+ feature to deposit crypto holdings and earn rewards. It also allows users to deposit and withdraw fiat currency and trade and store cryptocurrencies.