Thailand SEC Files Police Reports against Zipmex

Previously, Zipmex said it was in “advanced stages of negotiation” with two potential investors.

The Securities and Exchange Commission (SEC) of Thailand has filed a police complaint against crypto exchange Zipmex. In addition to the crypto company, the SEC filing also involves a co-founder of the company AkalarpYimwilai, who is also the CEO of its Thailand unit. The Thailand SEC said in an official statement that it is collecting transactional information from Zipmex after the exchange stopped withdrawals from its platform in July. However, the crypto company did not meet the deadline for delivering the information. The SEC said it filed the police complaints due to the non-compliance of the Commission’s order. Per the official release, the non-compliance is “an offense and as a penalty under Section 75 of the Digital Assets Act.” The SEC said the accusation is simply the beginning of the criminal law enforcement process.

Zipmex was among the several crypto forms impacted by the downturn across the entire crypto market. A lot of companies fell victim to bad debts and high leverage, which affected their revenues. As for Zipmex, the Singapore-based exchange gave out $48 million as a loan to Babel Finance and another $5 million to Celsius. Unfortunately, both companies have failed to repay their loans. The City-State High Court also granted Zipmex more than 3 months of creditor protection last month.

Zipmex in Thailand

In a statement, a Zipmex spokesperson told CoinDesk that the company is in the process of compiling relevant information. The representative added that the documents belong to Zipmex itself and Zipmex Pte. Limited, which is an entity under the regulator jurisdiction of the Thailand SEC. The spokesperson continued:

“With that said, any disclosure of Zipmex Pte Ltd’s information must be carried out with the utmost care and consideration to ensure that regulations are fully complied with and standards such as data privacy are duly observed. Customers can rest assured that the company is addressing this matter with your best interest in mind.”

Zipmex applied for creditor protection across five entities covering Singapore and Thailand. Others are Indonesia, and Australia, the company pushed further in its recovery plan. On the 26th of August, Zipmex appointed Australian restructuring firm KordaMentha to assist its recovery process. Under the agreement, KordaMentha will work with Morgan Lewis Stamford, the exchange solicitors. They will come together to reorganize the company and see to the preservation of its assets.

Separately, the crypto exchange company said it was in “advanced stages of negotiation” with two potential investors.

“Zipmex is considering offers from local and global investors, so that Zipmex’s operations can fully resume and be improved upon, including new projects, as well as our capabilities for the expanded ZMT and the Zipmex ecosystem across the region. Zipmex will officially announce as soon as any investment transaction is finalized and agreed upon.”