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.