Key takeaways:
- Thai SEC Charges Former Zipmex CEO with ‘Corruption and Deception’
- The SEC Accuses Exchange of Misleading Customers and Presenting False Information.
Thailand’s Securities and Exchange Commission (SEC) has initiated legal proceedings against Ekkalarp Yimwilai, former director and CEO of cryptocurrency exchange Zipmex Thailand.
The SEC alleges that Yimwilai made false statements and concealed crucial information from the public during his tenure at Zipmex Thailand.
In a statement released on February 8, the Thai SEC revealed that Yimwilai, while serving as CEO of Zipmex Thailand, provided false information regarding the transfer of assets from user Z Wallets to crypto wallets abroad.
The SEC contends that this discrepancy, which contradicted Zipmex’s terms and conditions, constitutes “corruption and deception” by withholding information from customers.
This development follows a recent order from the SEC of Thailand directing Zipmex to temporarily suspend its brokerage and trading services for digital assets. Yimwilai held the position of CEO at Zipmex Thailand from August 2018 to November 2023, as indicated on his LinkedIn profile.
Zipmex Thailand, a subsidiary of Singapore-based cryptocurrency exchange Zipmex led by Marcus Lim, is also implicated in the probe. Inconsistencies in customer asset reports emerged during the investigation, implicating both Yimwilai and Zipmex Thailand.
The SEC has referred a complaint regarding Yimwilai’s alleged actions to Thailand’s Office of the Provincial Crime Suppression Division for potential legal action. Reports submitted by Zipmex Thailand are also alleged to be inconsistent with information obtained by the SEC.
Yimwilai, who previously served as a legal counsel and political correspondent to the Thai government, faces the prospect of legal action through the Office of the Provincial Crime Suppression Division.
The investigation leading to these charges primarily focused on the provision of ZipUp/ZipUp+ services by Zipmex Thailand, which offered bonuses to customers utilizing the digital wallet (Z Wallet) on the exchange.
The Securities and Exchange Commission (SEC) commenced its investigation upon receiving reports of these alterations and the subsequent shift in service provision.
The SEC’s attention was drawn to potential discrepancies and irregularities in the handling of customer assets and bonuses, prompting a deeper examination into Zipmex Thailand’s operations and compliance with regulatory standards.
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