Former Zipmex CEO Charged by Thai SEC for Corruption and Deception

The former CEO of Zipmex, Akalarp Yimwilai, has been charged with fraud by Thailand’s Securities and Exchange Commission (SEC) for providing false information to customers regarding the use of their digital assets. According to the Thai SEC, Akalarp made deceptive statements during his tenure as CEO, suggesting that assets in user Z Wallets would be transferred to crypto wallets abroad. This violation of Zipmex’s terms and conditions is seen as an act of corruption and deception by the SEC, as it concealed vital information from customers. The regulator has referred a complaint against Akalarp to the Office of the Provincial Crime Suppression Division for potential legal action. Zipmex Thailand itself is under investigation for similar fraudulent activities, as the SEC’s findings are inconsistent with the reports provided by the company.

Records show that Akalarp served as the CEO of Zipmex Thailand from August 2018 to November 2023, as stated on his LinkedIn profile. Prior to this role, he worked as a legal counsel and political correspondent with the Government of Thailand for eight years. These credentials indicate his experience and knowledge in the legal and political spheres. It is worth noting that Zipmex Thailand, the local subsidiary of Singapore-based crypto exchange Zipmex, had faced scrutiny from financial regulators due to its acquisition by V Ventures in 2023.

In response to the SEC’s findings, on February 2, Zipmex was ordered to temporarily suspend its digital asset trading and brokerage services by the Thai SEC. The company was given a deadline of 15 days to comply with regulatory guidelines. This action taken by the SEC further highlights the seriousness of the allegations against Zipmex and the need for immediate remedial actions to restore trust and ensure compliance with regulations.

The charges brought against Akalarp Yimwilai and Zipmex Thailand underscore the importance of transparency and accountability in the digital asset industry. Customers rely on accurate and reliable information about the management and safety of their assets, and any discrepancies or misleading statements can significantly impact their trust and financial well-being. By taking legal action, the Thai SEC aims to hold individuals and companies accountable for their deceptive practices and protect investors from potential harm.

Moving forward, it is crucial for regulators, such as the Thai SEC, to continue monitoring and enforcing compliance in the digital asset industry. This will help maintain the integrity of the market and protect the interests of investors. Likewise, companies operating in this industry must prioritize transparency and ethical conduct to build and maintain a trustworthy reputation. Only through collective efforts and stringent enforcement can the digital asset industry thrive and gain widespread acceptance as a legitimate financial sector.