The Finance Ministry has revoked the digital asset business licences of Zipmex Thailand as requested by the Securities and Exchange Commission (SEC), citing the company's financial status could cause damages to investors while personnel is inadequate to operate efficiently.
The ministry agreed with the SEC's recommendation and considered that Zipmex Thailand, part of the embattled Asian cryptocurrency exchange Zipmex Asia Pte, violated both the SEC's order and the digital assets law, the regulator said in a statement.
The ministry issued an order to revoke Zipmex's licences as a digital asset platform operator and digital asset brokerage effective from May 28, 2024, noted the statement.
In mid-2022, Zipmex was accused by the SEC of corruption and defrauding the public as digital assets deposited through the ZipUp+ programme could not be withdrawn, causing damages to many investors for a sum of nearly 2 billion baht.
The SEC filed criminal complaints against former directors and the chief executive of Zipmex Thailand, Akalarp Yimwila, with the Economic Crime Suppression Division (ECD Police) for presenting false statements to the public.
The ECD Police concluded its investigation late last year and handed over the case to the Department of Special Investigation (DSI), citing widespread damage to the public.
According to the SEC statement, Zipmex must transfer assets back to customers or comply with customers' order within 15 days.
"If a customer does not notify the company of his or her request, or receive his or her assets back within the specified period, Zipmex must arrange for the assets to be deposited in the system for another 30 days, reporting each step of the operation to the SEC for acknowledgment," said the statement.
Zipmex has maintained its status as a company with rights, duties and liabilities. The company may face lawsuits under Thai law. Zipmex customers can obtain their assets through the company's contact channels. If they have any questions, they can ask for information via the SEC website.