Thailand SEC Reportedly Investigating Insolvent Zipmex Exchange

  • The sale of digital asset services and goods will be scrutinized by the regulator.
  • Zipmex declared bankruptcy after repeated attempts to resolve its financial difficulties.

Reportedly, the Securities and Exchange Commission (SEC) of Thailand has begun looking into the troubled cryptocurrency exchange Zipmex. The latter’s compliance with local regulations on the sale of digital asset services and goods will be scrutinized by the regulator.

Bloomberg reports that Thailand’s top financial regulator is to investigate insolvent Zipmex for allegedly operating an unlicensed “digital-asset fund manager.” Moreover, the ZipUP and ZipUP+ investment schemes on the platform will be scrutinized by the SEC.

The CEO of Zipmex, Akalarp Yimwilai, was issued a warning by the watchdog before. To avoid further regulatory examination, the cryptocurrency business has until January 12 to provide further information about its past operations.

Potential Recovery Plan

Furthermore, the protracted bear market had a major impact on the firm. After revealing a $53 million exposure to failing crypto platforms including Babel Finance ($48 million) and Celsius Network ($5 million), it froze user withdrawals in July of last year due to the tumultuous market.

Zipmex has begun holding talks with “interested parties” about a prospective purchase that might lead to a rescue plan. It reportedly sought meetings with the SEC to discuss a potential recovery plan and multimillion-dollar fundraising to compensate certain consumers.

Zipmex declared bankruptcy after repeated attempts to resolve their financial difficulties proved futile. The company was a major cryptocurrency exchange in Asia, with offices in Thailand, Singapore, Indonesia, and Australia.

Its Zipmex token (ZMT) has fallen over 70% since the platform acknowledged its troubles last summer, despite the fact that at its height it served over 2 million clients and provided access to digital currencies like Bitcoin (BTC), Ethereum (ETH), Ripple (CRP), and its own Zipmex token (ZMT).

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.