Centralised exchange Zipmex is the latest cryptocurrency enterprise to fall victim to the bear market, after the Singapore-based company filed for bankruptcy protection.
In a public statement issued on Thursday Jul 28 Zipmex said: “This helps protect Zipmex against third party actions, claims, and proceedings while it is active, and enables the team to focus all our efforts on resolving the liquidity situation, without having to worry about defending potential claims or adverse actions while we are doing so.
Since Zipmex is not licensed by the Monetary Authority of Singapore, unsecured creditors will likely face difficulty in recovering their funds.
As per Zipmex’s risk warning: “This means that you will not be able to recover all the money or DPTs (digital payment tokens) you paid to Zipmex if Zipmex’s business fails.”
User protections — or lack thereof — in the centralised finance space has been thrust into the spotlight following the collapse of a string of high profile crypto enterprises, including Celsius, Voyager, BlockFi and Vauld.
The exchange’s trade wallet and NFT platform remain active for the time being.