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SEC alleges fraud and deception by former Zipmex Thailand CEO

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TL;DR

  • SEC accuses ex-Zipmex Thailand CEO of fraud over overseas asset transfers.
  • Zipmex Thailand suspends services as SEC probes deception claims.
  • CEO faces complaint, signaling legal trouble amid crypto regulation push.

The Securities and Exchange Commission (SEC) of Thailand has levied serious allegations of fraud and deception against Akarlap Yimwilai, the former CEO of Zipmex Thailand, a cryptocurrency exchange. 

In a statement released Thursday, the SEC asserted that customer assets held in Zipmex Thailand’s Z Wallet were unlawfully transferred to overseas digital wallets before an official announcement regarding changes in the exchange’s terms and conditions. 

This action, the SEC contends, contradicted the information provided by Zipmex Thailand and constitutes fraudulent behavior.

Background on Zipmex Thailand

Zipmex Thailand, a subsidiary of the Singapore-based Zipmex, operates as a digital asset trading platform. Founded in 2020 and approved by the Ministry of Finance and SEC, the exchange has been operating under the leadership of Marcus Lim. However, recent developments have put the company under regulatory scrutiny.

The SEC’s investigation revealed discrepancies between the reports submitted by Zipmex Thailand and the information gathered independently by the regulatory body. Before the official announcement, the transfer of customer assets overseas raised red flags, prompting the SEC to accuse Zipmex Thailand of presenting false statements and engaging in fraudulent activities.

The commission’s actions have been swift and decisive. Last week, it ordered Zipmex Thailand to suspend all digital asset trading and brokerage services. The exchange’s website now displays a notice stating that both the website and mobile app have been disabled until further notice.

Legal proceedings and potential consequences

In response to the alleged misconduct, the SEC has filed a complaint against Akarlap Yimwilai with the Office of the Provincial Crime Suppression Division, recommending further legal action be taken against him. 

The SEC emphasized the importance of due process in determining whether criminal charges will be pursued, indicating that the investigative authority will play a pivotal role in the ensuing legal proceedings.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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