Thai SEC files police complaint against Zipmex and its co-founder

Thailand’s Securities and Exchange Commission (SEC) announced Wednesday that it has filed a police complaint against embattled crypto exchange Zipmex and its co-founder Akalarp Yimwilai, who is also the CEO of its Thailand unit.

The SEC said Zipmex was ordered to send information related to its business and operations, including wallets used to store customer assets, but it sent incomplete data. “Such actions by Zipmex and Mr. Akalarp are considered to be non-compliant with the competent official’s orders. Which is an offense and has a penalty under Section 75 of the Digital Assets Act,” said the SEC.

Per Section 75 of the Act, any person who fails to comply is liable for up to a year in jail and a fine of up to 100,000 Thai baht ($2,700). 

The Royal Thai Police’s Cyber Crime Investigation Bureau will now probe Zipmex and Yimwilai. The SEC said its action is only the beginning of the criminal law enforcement process in which it will be determined whether a person is an offender.

Commenting on the SEC’s action, Zipmex said in a statement that it is currently in the process of compiling relevant information.

“With reference to a letter from the Securities and Exchange Commission of Thailand (SEC) dated 2 September 2022 which requests Zipmex Co. Ltd. (Thailand) to declare its transactional details on digital assets transfers or withdrawals, Zipmex is currently in the process of compiling relevant documents that belong to both Zipmex itself and Zipmex Pte. Ltd., an entity which is not under the regulatory jurisdiction of the Thai SEC,” said the firm.

“With that said, any disclosure of Zipmex Pte. Ltd.’s information must be carried out with the utmost care and consideration to ensure that regulations are fully complied with and standards such as data privacy are duly observed. Customers can rest assured that the company is addressing this matter with your best interest in mind.”

The SEC’s action is the latest trouble for Zipmex, which halted client withdrawals in July. Zipmex’s finances soured due to its exposure to Babel Finance and Celsius, two beleaguered crypto lenders that suspended withdrawals in June. The crypto exchange has been trying to raise funds since then.

Late last month Zipmex said it is in “advanced” talks with two investors for a potential deal. The Block reported that those investors are Country Group Holdings (CGH), a Thailand-based investment firm, and Chalermchai Mahagitsiri, son of Thai billionaire and coffee king Prayudh Mahagitsiri.

Zipmex has until December 2 to sort out its financial problems, having received a moratorium extension of over three months from the Singapore High Court last month.

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