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Former Zipmex CEO Faces SEC Fraud Charges For  Misleading Customers

The SEC's investigation alleges that Yimwilai orchestrated the transfer of cryptocurrency from Zipmex Thailand's wallets to overseas digital wallets before notifying customers of service changes. 

The Securities and Exchange Commission (SEC) of Thailand has taken legal action against Akarlap Yimwilai, the former director and CEO of Zipmex Thailand. 

There are allegations that Yimwilai failed to disclose important information during his tenure, leading to Zipmex customers' financial losses. Yimwilai allegedly transferred cryptocurrency from Zipmex Thailand's wallets to overseas digital wallets without prior disclosure to customers, according to the SEC's investigation.

This move misled users about the safety of their assets, prompting the SEC to bring charges against him for violating Section 82 of the Digital Asset Business Operation Act B.E. 2561.

Inaccurate Reports and Regulatory Violations

Further accusations involve Zipmex Thailand submitting inaccurate customer asset reports, and violating regulatory requirements. The SEC contends that the submitted reports were inconsistent with the information independently ascertained by the regulatory body.

The SEC has escalated the matter by forwarding charges against Yimwilai to the Office of the Public Prosecutor (OPP) for additional legal proceedings.

Legal Action and Regulatory Response

The SEC has filed a formal complaint against Yimwilai with the Office of the Provincial Crime Suppression Division, indicating a pursuit of further legal action. Determining legal culpability will be a key step in this process, the SEC emphasized.

Zipmex Thailand, a unit of Singapore-based Zipmex led by Marcus Lim, received approval to operate from the Ministry of Finance and SEC in 2020. 

This recent development follows Zipmex Thailand's suspension of all asset trading activities in compliance with the SEC's directives. Earlier reports highlighted the company's application for court protection amid a wave of crypto lender bankruptcies. 

In November 2023, Zipmex presented a restructuring scheme to reimburse creditors with $0.30 on the dollar, facing resistance from key stakeholders.

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