crypto strategy

Thai SEC to investigate Zipmex over violation of certain cryptography rules (report)

Thailand’s Securities and Exchange Commission (SEC) has reportedly launched an investigation against struggling cryptocurrency platform Zipmex.

The watchdog will check if the latter has violated certain national rules when offering digital asset services and products.

No more problems for Zipmex

According to a Bloomberg blanketThailand’s top financial regulator will investigate Zipmex’s bankruptcy for breaking local laws and running an “unlicensed digital asset fund manager”.

The SEC will investigate the platform’s ZipUP and ZipUP+ programs that allowed users to earn a return on their investments.

The watchdog previously wrote a warning letter to Zipmex CEO Akalarp Yimwilai. The crypto firm has until January 12 to shed light on its activities over the years and thus escape regulatory scrutiny.

The company was among the main victims of the prolonged bear market. He on break client withdrawals in July last year, citing volatile market conditions, and revealed $53 million exposure to struggling crypto platforms – Babel Finance ($48 million) and Celsius Network ($5 million of dollars).

Zipmex started discuss possible acquisition deals with “interested parties” who could present a rescue plan. This too request for meetings with the SEC regarding a possible stimulus strategy and a multi-million fundraiser that could reimburse some customers.

Despite efforts, Zipmex was unable to resolve its issues and deposit for bankruptcy protection. The company, which operated in Thailand, Singapore, Indonesia and Australia, was among the top cryptocurrency exchanges in Asia.

It had over two million customers at its peak and enabled access to assets like Bitcoin (BTC), Ethereum (ETH), Ripple (CRP) and its token Zipmex (ZMT), which plunged over 70 % since the platform announced its problems. last summer.

From its all-time high of $5.30, the current valuation of around $0.17 represents a whopping 96% decline.

A takeover offer on the horizon

Some Sources informed that the Singapore-based investment firm – V Ventures – has been in “advanced talks” with Zipmex regarding a possible acquisition deal.

If completed, the $100 million deal will give V Ventures a 90% stake in the struggling organization. The investment company will supposedly pay $30 million in cash and the rest in cryptocurrencies. According to the court hearing, the digital assets will then be deployed to unfreeze client wallets by the end of Q1 2023.

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