SEC imposes THB1.92-million fine on Zipmex Thailand

The fines were levied for committing two offences: suspending digital asset trading in violation of SEC’s trading rules, and prohibiting customers from depositing and withdrawing from the company’s Trade Wallet and Z Wallet.

The SEC stated that from July 20-28, 2022, Zipmex, an operator of a digital asset trading hub and a digital asset broker, had suspended trading of digital assets on its platform, both in part and in whole, without following the criteria and conditions stipulated in the SEC’s trading rules. The offence resulted in a fine of 540,000 baht.

The SEC added that during July 20 to August 25, 2022, Zipmax also suspended deposit and withdrawal of customers’ assets in the company’s Trade Wallet and Z Wallet, in violation of professional ethics and failing to provide a quality service. This offence resulted in a fine of 1,380,000 baht.

Meanwhile, Zipmex Thailand said on its Facebook on Thursday: “The company prioritises following the regulations and maintaining professional ethics in all aspects of business operation. We are ready to discuss with the SEC regarding the fine order, and will evaluate the punishments closely with our legal advisers. We understand the duty and responsibility of the SEC in digital asset monitoring to ensure that all investors are protected.”

On July 20, Zipmex Thailand suspended trading on its platform to disable ZipUp+ from the platform.

Zipmex Thailand CEO Akalarp Yimwilai later issued a Facebook Live announcement that ZipUp+ was a product of Zipmex Global, a key partner of Zipmex Thailand. He said Zipmex Global had deposited coins in ZipUp+ with two crypto lenders, Babel Finance and Celsius, who suffered a liquidity crunch and could not return the digital assets. Celsius has gone bankrupt.

Zipmex Thailand said it would sue Babel Finance for the return of its customers’ digital assets.