Eqonex (EQOS), a Nasdaq-listed provider of cryptocurrency financial services, made a voluntary request to the High Court in Singapore to place the company under the legal system.
According to a separate U.S. regulatory statement from the company, the court filing was made in accordance with the regulations for insolvency, restructuring, and dissolution. In addition to bargaining with Bifinity to prolong a loan provision, Eqonex had been in talks with prospective buyers to secure equity financing through the issuance of additional shares.
Jonathan Farnell, formerly in charge of operations in the United Kingdom at Binance, was appointed CEO after Bifinity agreed to provide a $36 million loan that could be converted into equity. Bifinity withheld the fifth loan tranche due to procedural violations of the loan contract.
According to the filing, Diginex, a subsidiary of Eqonex with offices in Hong Kong, has been put into creditors’ voluntary liquidation. Eqonex Capital, its Singapore subsidiary, will probably also go into voluntary liquidation.
Bletchley Park Asset Management and Digivault are two additional divisions of the group that are not close to bankruptcy. The latter will start a voluntary halt; it is a unit certified with the Financial Conduct Authority (FCA) in the United Kingdom.
As a result, the Applications are meant to protect and enhance value for all stakeholders (including the Group’s clients and creditors) and to create a stable framework for finding the best possible solution for the interests of the Group’s stakeholders.
The company admitted in a formal release that it had fallen short of the high expectations it had set for itself as one of the first listed, regulated digital asset ecosystems. Yesterday, as concerns about crypto market spillover effects spread, the company’s shares dropped by almost 24%. This year, they have decreased by 91%.
The difficulties facing Eqonex are part of a larger crypto industry. With billions of dollars missing from the company accounts, FTX, once the second-largest cryptocurrency exchange in the world, filed for bankruptcy this month. Even Genesis is battling to raise money for its lending division and has warned prospective buyers that it may go bankrupt.
Yesterday, as concerns about crypto market spillover effects spread, the company’s shares dropped by almost 24%. This year, they have decreased by 91%.
The company claimed in a letter sent to shareholders published on its website that ensuring the company was properly controlled at a time when “grow-at-all costs” development characterized the cryptocurrency space may have hindered its ability to grow as quickly as it wanted.
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