Zipmex gets 3-month protection in Singapore despite halt to withdrawals

Struggling crypto exchange Zipmex has time to come up with a restructuring plan by December 2 after halting withdrawals in July .

Cryptocurrency exchange Zipmex got a chance to fix liquidity issues as a Singapore court granted the company more than three months of creditor protection.

Singapore's High Court has ruled that each of the five Zipmex entities has a moratorium until December 2, 2022 to draw up a restructuring plan, Bloomberg reported on Monday.

The action seeks to protect Zipmex from potential creditor lawsuits during the standstill period after the exchange abruptly halted crypto withdrawals on its platform in mid-July. The cryptocurrency has since resumed partial withdrawals from the Zipmex trading wallet, but has not yet resumed all withdrawals.

Zipmex filed for creditor protection for a period of six months after halting withdrawals, filing five standstill requests on July 27. The exchange cited liquidity issues due to exposure to cryptocurrency lender Babel Finance, which halted withdrawals in June.

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