Thai SEC Files Complaint Against Zipmex And The Exchange's CEO
According to the SEC, Zipmex and Yimwilai failed to disclose transaction information beginning in July 2022, when withdrawals were prohibited.
Due to “volatile market conditions” and its exposure to lenders Babel Finance and Celsius, the company declared a withdrawal freeze on July 20, 2022.
It has a Thai SEC digital asset trading license and operates in Singapore, Indonesia, and Australia. Zipmex Pte, its Singapore subsidiary, has secured three months of creditor protection in a Singapore court order.
According to the Thai SEC, after being approached by a government official under Section 51 of the Digital Asset Business Act, Zipmex first only submitted a portion of the information.
The SEC requested the information in response to concerns raised about the company’s ZipUp+ project. The SEC’s action is just the beginning of legal processes. Zipmex has not publicly responded to the complaint.
Zipmex requested a meeting with the Thai SEC and government authorities on August 26, 2022, to discuss a rehabilitation strategy for the troubled exchange, which fell prey to the system of interconnected lending that has seen many crypto firms file for bankruptcy.
The exchange had financed Babel Finance $48 million and crypto lender Celsius $5 million, expecting that the companies would be able to settle their debts swiftly if necessary, a belief that was immediately falsified, putting the exchange in need of funding during a market downturn.
The Thai government is looking to reevaluate its approach to crypto, choosing to grant discretionary powers to the central bank to oversee the sector. Recently, the country’s agencies are also tightening crypto advertising to avoid economic consequences.
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