Cryptocurrency firm Eqonex has filed a voluntary application with Singapore’s High Court to place the company into judicial management. The crypto financial services firm filed a report with the United States Securities and Exchange Commission (SEC) on 21 November.
As per the filing, Eqonex’s Hong Kong-based unit, Diginex, has been placed into creditors’ voluntary liquidation. Its Singapore unit, Eqonex Capital, will also likely enter voluntary liquidation.
A trail of unsuccessful dealings
Eqonex signed a strategic partnership with Binance-owned payments technology firm Bifinity in March this year. As Bifinity lent the company $36 million that could be converted into equity, Eqonex focused on custody, brokerage, and asset management. However, because of technical breaches in the loan agreement, Bifinity withheld the fifth tranche.
So far, Eqonex has been unable to reach an agreement with potential investors to obtain equity financing through the issuance of new shares. It has also failed to persuade Bifinity to change the terms of the previously mentioned loan agreement.
Other divisions of the group, such as Bletchley Park Asset Management and Digivault, are not insolvent. The latter, which is a unit registered with the Financial Conduct Authority (FCA) in the United Kingdom, will begin a voluntary halt.
In October 2020, Eqonex got listed on Nasdeq- the first Nasdaq-listed company with a crypto exchange. In August 2022, Eqonex closed its cryptocurrency exchange citing extreme market volatility and declining trading volumes. It added that it is planning to focus on its asset management and custody.
Eqonex shares plummet
The company’s shares fell from $0.2759 to $0.21 within two days, showing a drop of 24%.
In a bid for revival, the company’s Board of Directors has proposed the appointment of Mr. Joshua James Taylor and Ms. Chew Ee Ling. They will act as the company’s joint judicial managers to manage its affairs, business, and property for the time being.