Eqonex Files for Voluntary Debt Restructuring in Singapore

Eqonex Collaboration With Bifinity
Negotiation With Potential Investors

The High Court in Singapore received a voluntary application from Eqonex (EQOS), a Nasdaq-listed provider of cryptocurrency financial services, to put the business under judicial administration. Eqonex stated in a report on Monday with the U.S. Securities and Exchange Commission that its Hong Kong-based company, Diginex, had been put into creditors' provisional liquidation and that Eqonex Capital in Singapore is also anticipated to join voluntary administration.

Eqonex Collaboration With Bifinity

In March, the business started getting ready to concentrate on custody, brokerage, and asset management by signing a strategic relationship with Bifinity, a payments technology company controlled by cryptocurrency exchange Binance. Jonathan Farnell, formerly in charge of Binance's U.K. operations, was appointed CEO in exchange for Bifinity agreeing to fund a $36 million loan that may be turned into stock. Bifinity delayed the fifth installment of the debt due to some technical violations of the credit agreement.

Negotiation With Potential Investors

The organization has been negotiating with possible investors to get financial support through the sale of additional shares and has been engaging with Bifinity to request, among other things, a remission of violations and an alteration of provisions under the loan contract to resolve these liquidity concerns. The business added that these conversations have regrettably not been fruitful, notwithstanding the group's best efforts.

Yesterday, as worries of contagion enveloped the cryptocurrency market, the firm's shares dropped by over 24%. They have fallen 91% this year. Eqonex was the initial Nasdaq business with a crypto exchange when it debuted in October 2020.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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Eqonex Files for Voluntary Debt Restructuring in Singapore

Gungun Bhatia

Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.