Thailand’s Securities and Exchange Commission (SEC) has filed charges against former Zipmex Thailand CEO Akarlap Yimwilai, accusing him of corruption and deception.
The SEC claims that Yimwilai, during his tenure as CEO from August 2018 to November 2023, engaged in fraudulent activities, including making false statements and concealing vital information from the public.
Deceptive Asset Transfers and Inconsistent Information
The allegations stem from a discovery made by the SEC regarding the transfer of customer assets from Zipmex Thailand’s Z Wallet to overseas digital addresses before any official announcement was made regarding changes in the platform’s terms and conditions.
“Therefore, it is considered that Zipmex Thailand has committed fraud by presenting false statements and concealing the truth which should be told to customers,” stated the SEC in a Thursday report.
This action contradicted the information previously provided to its users by Zipmex Thailand, resulting in the SEC considering it fraudulent behavior.
Following this, the agency filed a complaint against Mr Yimwilai, who served as director and CEO of Zipmex Thailand, with the Office of the Provincial Crime Suppression Division, urging further legal action against the former CEO for his role in these deceptive practices.
Zipmex Thailand, which is responsible for providing reports on customer assets in line with the SEC’s announcement, has submitted information inconsistent with the findings of the agency’s inspection.
As a result, the SEC also highlighted potential legal implications for such actions under Section 88 of the Digital Assets Act, which pertains to entering false information or omitting crucial details in the accounts or documents of a business entity.
SEC Orders the Suspension of Services
In light of these developments, Zipmex Thailand has faced regulatory sanctions, with the SEC ordering the exchange to suspend its digital asset trading and brokerage services.
Visitors to the Zipmex Thailand website are greeted with an announcement confirming the suspension of services, while the mobile app has also been disabled.
Zipmex, a Singapore-based cryptocurrency exchange platform, was founded in 2019 and has rapidly expanded its operations across Southeast Asia, including Thailand, Indonesia, and Vietnam. Led by Marcus Lim, Zipmex gained approval to operate in Thailand in 2020, authorized by the Ministry of Finance and the SEC.