SEC Thailand Officially Report Zipmex To Police

Zipmex was reported to the police by the Thai SEC. (Bitcoin Garden)

JAKARTA The Zipmex crypto exchange, which recently suspended the withdrawal of user-owned funds, was recently reported by the Securities and Exchange Commission of Thailand (SEC) to the authorities. The regulator has officially filed a complaint with the police over Zipmex regarding non-compliance.

The leading crypto trading company in Asia Pacific has been operating in a number of countries including Singapore, Indonesia, Thailand, and Australia. According to a statement from the SEC, it has reported the company's executive, namely the CEO of Zipmex Thailand, Eklarp Yimwilai, to the Technology Crime Investigation Headquarters.

According to a DailyCoin report, the case has been registered with the Thai Royal Police (AMC) for non-compliance under the Digital Assets Act. Under the law, companies and their executives have been ordered to send information to crypto wallets, which are used to store customer assets and details about digital asset transfers or withdrawals.

Zipmex and Eklarp are considered responsible for not sending information to authorities within a specified time. Furthermore, the SEC said that after receiving a notification from officials, Zipmex only submitted some incomplete information to the SEC.

In addition, the company was also late in submitting the requested information. This action is claimed to be non-compliance which is a violation of the law based on the Digital Asset Act.

Reasons for Zipmex to Resilient User Fund Withdrawal

Previously, Zipmex had suspended the withdrawal (withdrawal) of crypto exchange platform user funds on the grounds that the company was experiencing financial difficulties. This is the impact of the problematic crypto lending platform, Babel Finance.

With the collapse of Babel Finance, Zipmex cost about 100 million US dollars on the crypto loan platform. Even so, the Singapore High Court gave the decision that the company received protection for three months from creditors to complete the funding plan.

In the middle of last month, shareholders and investors at Zipmex urged CEO Marcus Lim to step down from his post. Lim is also known to own 25 percent of the company's shares. On the other hand, Zipmex's management team is working hard to restore companies that have a positive impact on platform users. Zipmex has allowed its users to pull tokens off the platform.

The crypto market drop in recent months initiated by the collapse of LUNA in May has had a domino effect on other crypto companies, including the Three Arrows Capital and Babel Finance, which then impacted the Zipmex crypto exchange.