On September 7, Thailand’s Securities and Exchange Commission (SEC) said that it had filed a police complaint against cryptocurrency exchange Zipmex and its co-founder, Akalarp Yimwilai, who is also the CEO of its Thailand business. The complaints were filed against Zipmex and Yimwilai.
According to the SEC, Zipmex was asked to disclose information pertaining to its business and operations, such as wallets used to hold client funds. However, the company only supplied partial data. The SEC said “These kinds of acts taken by Zipmex and Mr. Akalarp are seen as being in violation of the directions issued by the appropriate authorities. That is a violation of Section 75 of the Digital Assets Act, for which there is a penalty if you are caught.
Any individual who violates the terms of Section 75 of the Act is subject to a possible sentence of one year in prison and a fine of up to 100,000 Thai baht (about $2,700).
Both Zipmex and Yimwilai are going to be investigated by the Cyber Crime Investigation Bureau of the Royal Thai Police. The Securities and Exchange Commission has said that the action it has taken is only the first step in a process of criminal law enforcement in which it will be established whether a person is an offender or not.
Zipmex issued a statement in which it commented on the action taken by the SEC and said that it is in the process of accumulating relevant information at this time.
The move taken by the SEC is the most recent setback for Zipmex, which put a stop to the withdrawals of customer funds in July. Zipmex’s financial situation deteriorated as a result of the company’s exposure to the troubled cryptocurrency lending platforms Babel Finance and Celsius, both of which froze withdrawals in June. Since that time, the cryptocurrency exchange has been working hard to increase its funding.
Zipmex said at the end of the month that it is in “advanced” negotiations with two investors on a prospective business partnership. These investors include Country Group Holdings (CGH), an investment business located in Thailand, and Chalermchai Mahagitsiri, who is the son of Prayudh Mahagitsiri, the coffee king of Thailand and a millionaire in his own right.