Singapore-based Cake Group, the parent company of crypto platform Bake, is winding up its company and has filed for liquidation. According to a report from Tech in Asia, U-Zyn Chua, the founder of the crypto investment platform, has applied to wind up the Cake Group at a Singapore High Court. The exact reasons for the company’s wind up are unclear at this time. However, in September, Bake crypto platform, formerly known as Cake DeFi, announced layoffs, which impacted 30% of its workforce. The company stated that the cuts were due to reorganization brought on by the current bear market and individual performance issues.
Winding Up Process in Singapore
Winding up a company in Singapore is a legal process that involves selling the company’s assets to pay off its debts. The remaining funds from the asset sales, after settling all debts, are then distributed among the company’s shareholders. In this case, Chua listed himself as the plaintiff and the Cake Group as the defendant in the liquidation application. The court has scheduled a hearing on December 22 for creditors or opposers of the company’s winding up.
Cake Group’s Growth and Decline
- Cake Group experienced significant growth in 2021, along with many other decentralized finance (DeFi) platforms.
- An unaudited financial statement released by the company showed a year-on-year revenue increase of 1,800%, reaching $631 million.
- The Group’s operating income for the year reached $203 million.
However, the company’s growth began to decline following the crash in crypto prices in May 2022 and the prolonged crypto winter. Julian Hosp, co-founder of Cake Group, stated that the firm’s revenue fell to US$266 million in 2022, and profits dropped to US$23.5 million from US$134 million in 2021.
