According to a corporate update released on Wednesday, Zimplex has reportedly filed for bankruptcy. The news comes just days after the Thailand-based crypto exchange temporarily halted withdrawals on July 20 before resuming limited withdrawals last week.
As of the update, Zimplex specifically filed for bankruptcy protection against the legal action of creditors. The bankruptcy applications were filed in Singapore on 22 July by a consortium of Gimplex companies. The companies include Zipmex Company Limited, Zipmex Pte Ltd, Zipmex Exchange Indonesia and Zipmex Asia Pte Ltd.
After Voyager Capital and Celsius, Zimplex has become the latest crypto firm to file for bankruptcy.
30 days for Singapore court to pronounce verdict
By law, a Singapore court would take approximately 30 days to rule on the petition, which if granted would automatically grant Zimpex protection from initiating or continuing lawsuits by claimants.
In a statement acknowledging the filing for bankruptcy, Zimplex said:
“It helps to protect Zipmex against third party actions, claims and proceedings while being active[…] When we’re doing this without having to worry about defending potential claims or adverse actions.”
Zimplex is currently only allowing clients to withdraw assets from their Trade Wallet, while withdrawals from Z Wallet remain suspended and all operations associated with Z Wallet remain closed.