The Securities and Exchange Commission (SEC) is demanding answers from executives of Zipmex after the cryptocurrency exchange refused to explain its filing for debt relief in Singapore.
The Singapore-based company, which is licensed to act as a digital currency trading platform in Thailand, has yet to issue any formal explanation for its bankruptcy filing, SEC secretary-general Ruenvadee Suwanmongkol said on Friday.
Ms Ruenvadee said her office has not remained idle since news of the move broke, saying a request for a detailed explanation was sent to the company on July 22. No response has been received by the SEC despite the regulator’s assertion to Zipmex that it has a responsibility to clarify its decision to its investors, the public and the commission in line with the requirements of its licence.
“If the company is of good intent, as it has portrayed itself in social media, it must indicate how it will aid its clients and what steps are to be taken,” Ms Ruenvadee said.
The SEC has been fielding complaints from investors since July 20 as well as coordinating with agencies including the Department of Special Investigation (DSI) and the Police Cyber Taskforce, to determine if any criminal offences have been committed.
The Finance Ministry is also closely monitoring the Zipmex situation, with the SEC providing updates regularly, she added.
Anek Yooyuen, assistant secretary-general for enforcement with the SEC, said people who have invested in Zipmex can file complaints with the SEC, the DSI or the Police Cyber Taskforce. The agencies are working together and exchanging information to provide aid and take legal action.
The trouble at Zipmex centres on its ZipUp+ investment product, an interest-bearing account that offered yields as high as 10% to investors who deposited digital assets such as Bitcoin, Ethereum, USD Coin and Tether.
However, it turned out that the company had in turn deposited $53 million from ZipUp+ with the crypto lenders Babel Finance and Celsius, which have since filed for bankruptcy protection.
Zipmex, which operates in Thailand, Singapore, Indonesia and Australia, suspended withdrawals on July 20 before resuming them the next day, and said it was working to address its exposure to Babel and Celsius.
The company, founded by Thai and Singaporean partners, has also said it is in negotiations with prospective investors to inject fresh capital.