Thai Regulator Accuses Former Zipmex CEO of Corruption and Fraud

The Securities and Exchange Commission (SEC) of Thailand has accused former Zipmex CEO Akalarp Yimwilai of fraud and misleading clients.

According to the regulator’s investigation, the exchange transferred user funds stored in the platform’s Z Wallet to other addresses, notifying clients of the transactions only after the fact.

“We believe that the Thai division of Zipmex committed fraud by making false statements,” the SEC statement said.

The agency contends that such actions violate the company’s terms of service, and Yimwilai is guilty of “corruption and deceit” for withholding information from users.

The commission has filed a complaint with the Provincial Crime Suppression Division of Thailand, which will decide on initiating a case. The SEC first approached the police with a complaint against Zipmex and its co-founder in autumn 2022.

According to his LinkedIn profile, Yimwilai served as regional CEO of Zipmex from August 2018 to November 2023. He was also a legal advisor and political correspondent in the Thai government for eight years.

In July 2022, Zipmex faced a liquidity crunch following issues with partners Babel Finance and Celsius Network. Subsequently, the platform suspended withdrawals, citing “circumstances beyond its control.”

Days later, the exchange partially resumed deposits and withdrawals and later sought court protection from creditors in Singapore.

In December, it was revealed that venture firm V Ventures proposed to acquire 90% of the company’s shares, valued at approximately $100 million.

Zipmex promised to fully resume withdrawals after the deal’s completion. However, in March 2023, it warned of potential liquidation due to V Ventures missing a tranche payment.

Earlier in February 2024, the Thai regulator ordered the exchange to suspend trading of digital assets and brokerage services.