Former Zipmex Thailand CEO indicted by Thai SEC

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Thailand SEC charges former Zipmex CEO with ‘corruption and fraud’

The SEC condemns exchanges that mislead customers and provide false information.

Thailand’s Securities and Exchange Commission (SEC) has launched legal action against Ekkalarp Yimwilai, former director and CEO of cryptocurrency exchange Zipmex Thai.

The SEC alleges that Yimwilai made false statements and concealed material information from the public while employed at Zipmex Thai.

Thailand’s SEC said in a statement released on February 8 that Yimwilai provided false information regarding the transfer of assets from User Z’s wallet to an overseas cryptocurrency wallet while he was CEO of Zipmex Thailand.

The SEC alleges that these discrepancies, which violate Zipmex’s terms of use, constitute “corruption and fraud” by withholding information from customers.

This development follows Thailand’s SEC recently ordering 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 in his LinkedIn profile.

Zipmex Thai, a subsidiary of Singapore-based cryptocurrency exchange Zipmex led by Marcus Lim, was also implicated in the investigation. During the investigation, discrepancies in customer asset reports were revealed, meaning both Yimwilai and Zipmex Thai were implicated.

The SEC referred complaints about Yimwilai’s conduct to Thailand’s provincial crime suppression department for potential legal action. Reports filed by Zipmex Thai are also said to be inconsistent with information obtained by the SEC.

Yimwilai, who previously worked as a legal adviser and political correspondent for the Thai government, is likely to face legal action through the provincial Crime Suppression Bureau.

The investigation that led to these allegations primarily focused on Zipmex Thai’s provision of the ZipUp/ZipUp+ service, which offers bonuses to customers who utilize a digital wallet (Z Wallet) on the exchange.

The Securities and Exchange Commission (SEC) received reports of these changes and resulting changes in service delivery and began an investigation.

The SEC noted potential inconsistencies and irregularities in the processing of customer assets and bonuses, which led to an in-depth investigation into Zipmex Thai’s operations and compliance with regulatory standards.