Zipmex Crime Exchange has applied for protection against bankruptcy

Zipmex Crime Exchange has applied for protection against bankruptcy

The ongoing crisis in the cryptoval market hit another member of the market; the Singapore Cryptal Exchange Zipmex announced on Wednesday that it had applied for a moratorium on payments to five commercial entities; according to the company, the moratorium would protect it from lawsuits or litigation for up to six months.

According to the company, this step will provide it with "the opportunity" to explore options for dealing with liquidity problems, to develop a restructuring plan and to provide additional investment to continue its operations.

Zipmex had liquidity problems and was forced to suspend withdrawals on Thursday last week. The company blamed the two cryptized financial companies Babel Finance and Celsius Network. The Hong Kong-based Basel Finance owed Zipmex $48 million, while Celsius, who applied for bankruptcy in New York, claimed $5 million.

According to Forbes, cryptobearing is at risk of being investigated by the Thai Securities and Exchange Commission, which stated on Monday that it was investigating potential losses to investors following the suspension of Zipmex withdrawals.