- Thailand’s BX exchange has been charged by the country’s SEC in a criminal lawsuit filed on Tuesday.
- The SEC alleged that the exchange moved users’ assets to an unauthorized wallet, which is an offense.
BX exchange (or Bitcoin Company Limited), the first digital currency exchange in Thailand, is currently facing a lawsuit from the country’s Securities and Exchange Commission (SEC). In the suit, the regulator claimed that the crypto exchange moved its customers’ digital assets to different addresses, which wasn’t authorized to hold the customers’ cryptocurrencies. This is coming over a year after BX closed operations in the country.
SEC opens lawsuit against BX exchange
The regulator filed a criminal lawsuit against the BX exchange yesterday, according to the information provided by the Bangkok Post. This suit was also filed with the country’s Economic Crime Suppression Division to investigate the defendant. Following the charges, the Thailand exchange allegedly moved customers’ funds to wallets not owned by them, which the SEC says was an “offense under sections 85 and 87 of the Digital Asset Business Ordinance, 2018 or Digital Assets Act.”
This is only the first step of the criminal law enforcement process. The subsequent steps involve the identification of the offenders, prosecution, and trial and adjudication, according to the report.
Launched in 2014, the BX exchange was an SEC-regulated cryptocurrency exchange that facilitated lots of trading and exchange for Thai investors and traders. However, it announced plans of closing down on September 30, 2019, with the intention to focus on other business opportunities.
The closure of the crypto exchange came just when the customers doubted the genuineness of BX increasing trading volume, users, and the company’s valuation. Although BX asked the customers to withdraw their assets before November 1, 2019, the report from Bangkok Post claimed that the exchange did stop its communication line for users seeking to retrieve their cryptocurrencies.