Zipmex Apply For Bankruptcy Protection, Here's The Fate Now!

Zipmex files for bankruptcy protection. (Zipmex)

JAKARTA – Zipmex has temporarily stopped withdrawing funds because it was affected by the bankrupt crypto company, Celsius. According to a recent report, Zipmex has filed for bankruptcy protection from potential creditors.

Previously, Zipmex had applied for a 6-month extension, but the court only granted an extension that was valid until December 2. In July, crypto exchange Zipmex suspended withdrawals and filed for bankruptcy protection from potential creditors to draw up a funding plan.

Coinspeaker reports that the Zipmex Group admitted to experiencing liquidity problems and filed for an extension of the moratorium on five of its entities: Zipmex, Zipmex Asia, Zipmex Thailand, Zipmex Indonesia, and Zipmex Australia. Until December 2, the company will be free from lawsuits by potential creditors.

According to his blog post, the crypto exchange deposited funds into several crypto lending platforms including the Celsius Network. This is done for its ZipUp+ product. Following market conditions, he tries to withdraw funds from all his deposit partners. Unfortunately, Celsius notified the exchange on June 3, 2022, that it had halted withdrawals due to unforeseen circumstances.

On July 14, Celsius declared bankruptcy. During that period, Babel Finance, another deployment partner, also admitted to having liquidity problems. Babel is expected to resolve this issue in no time, but a meeting between the partners on July 20 gave the company serious objections to this possibility. This affected their temporary decision to suspend transfers between Z wallets and Trading wallets.

According to them, several steps are being taken to raise funds to solve the problems facing the company.

“Zipmex is exploring various avenues. First, Zipmex is working to recover assets from Babel Finance. Second, we are in advanced fundraising conversations that will allow us to reactivate Z Wallet transfers."

Their cause has been backed by shareholders who have made additional investments into Zipmex Token (ZMT). This is to increase investor confidence in the token and the company's business. It didn't stop there, the exchange also announced that it had signed a Memorandum of Understanding with two investors and accelerated due diligence.

The company claims to have resumed operations by transferring unaffected assets from customers' Z wallets to their Trading wallets. Some of these assets include Solana (SOL), Cardano (ADA), and XRP. The company has also assured that Bitcoin (BTC) and Ethereum (ETH) will be transferred to customers alike.

"We remain committed to completing the gradual transfer of all customer assets and expedite all actions to resume full Z Wallet services," Zipmex said.