Former Zipmex CEO Charged by Thai SEC for Misleading Investors

Akalarp Yimwilai, the former chief executive of a crypto exchange based in Singapore, Zipmex, has been charged by the Thailand Securities and Exchange Commission (SEC) for allegedly misleading investors with information related to the use of their digital assets.

As reported earlier by TheCoinRise in July 2022, Zipmex, formerly Asia Pacific’s leading digital asset exchange platform, lodged a number of petitions for moratoria under Section 64 of Singapore’s Insolvency, Restructuring, and Dissolution Act 2018. The exchange is currently undergoing scrutiny from regional regulators as well. 

Former Zipmex CEO Charged by Thai SEC

A statement provided by the Thai SEC on Thursday revealed that during his tenure as CEO of Zipmex Thailand, Akalarp purportedly disseminated misleading information concerning the transfer of assets from user Z Wallets to overseas crypto wallets. 

The Thai SEC asserts that this deviation from the bankrupt exchange’s stated terms and conditions constitutes an act of “corruption and deception,” as customers were allegedly kept uninformed about crucial details regarding their assets.

Committing Fraud

Akalarp was the chief executive at the bankrupt exchange between August 2018 and November 2023, as per his LinkedIn profile. It is important to note that the Thailand venture of the Singaporean exchange was approved by the Ministry of Finance and SEC in 2020.

“Therefore, it is considered that Zipmex Thailand has committed fraud by presenting false statements,” the SEC said.

Fraudulent Conduct

Following the purported actions of Akalarp, the regulatory body has forwarded a complaint to Thailand’s Office of the Provincial Crime Suppression Division, suggesting potential legal ramifications. 

Zipmex Thailand finds itself entangled in similar allegations of fraudulent conduct, as discrepancies in customer assets have emerged, contradicting the findings of the SEC’s investigation.

As reported earlier by TheCoinRise, V Ventures, a venture capital firm, had decided to purchase the bankrupt crypto exchange for a price of $100 million. However, a Bloomberg report revealed that regional regulators were investigating the agreement between the two companies over a violation of business rules for digital asset service providers.

The Thai SEC stated that the exchange has to clarify whether it has been functioning as a “digital asset fund manager without permission” in Thailand. 

Zipmex Ends Operations

The Thai SEC ordered the crypto exchange to suspend its crypto trading and brokerage services in the region, and the platform’s website currently displays a notice stating that its mobile application has been disabled. 

The regulator has claimed that the information submitted by Zipmex Thailand has been inconsistent with the information that it was able to gather and verify.