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Singapore-based Cake Group, the parent company of crypto platform Bake, is winding up its company and has filed for liquidation.

According to a Tech in Asia report, the founder of the crypto investment platform U-Zyn Chua has applied to wind up the Cake Group at a Singapore High Court.

The reasons for the company’s wind up aren’t clear. However, in September, Bake crypto platform, which changed its name from Cake DeFi, announced layoffs, affecting 30% of its workforce.

Bake said at the time that the cuts came as a “result of reorganization brought on by the current bear market and individual performance issues.”

Per the liquidation application, Chua listed himself as the plaintiff and the Cake Group as the defendant.

Winding up of a company in Singapore is a legal process where the court orders to sell company assets to pay debts. The remaining money from the assets collected after settling all debts, is then distributed among the company’s shareholders.

The liquidation claim is being filed under the Singaporean Insolvency, Restructuring and Dissolution Act of 2018, the court filing said.

The court has scheduled a hearing for creditors or opposers of the company winding up, for December 22.

Cake Group’s Revenue Slump

Cake Group saw massive growth in 2021 like many decentralized finance (DeFi) platforms. The company released an unaudited financial statement at the time that showed revenue reaching $631 million, year-on-year increase of 1,800%.

Additionally, the Group’s operating income hit $203 million for the year. However, following the massive crash in crypto prices in May 2022, and the prolonged crypto winter, the growth gradually slumped.

Cake Group co-founder Julian Hosp said 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.

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