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HomeCryptocurrency NewsThailand Regulators Investigate Troubled Zipmex Over Earn Program ZipUp+

Thailand Regulators Investigate Troubled Zipmex Over Earn Program ZipUp+

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Thailand Regulators Investigate Troubled Zipmex Over Earn Program ZipUp+

The Securities and Exchange Commission of Thailand is reportedly investigating troubled crypto firm ZipMex for possible misconduct in its Earn program named ZipUp+. According to a letter sent to the company’s CEO Akalarp Yimwilai on December 28 and shared with reporters, the Thai SEC is demanding clarity from Zipmex’s local unit on how it operated the Earn program. Per the letter, the Thai regulatory agency is accusing Zipmex of offering risky and unapproved crypto services against the Emergency Decree.

Zipmex Troubles in Thailand

Zipmex paused withdrawal and other services mid-last year after reporting a $53 million exposure to Babel Protocol and Celsius Finance.

As a result, the company filed for bankruptcy protection under Singapore’s judicial system.

With the company’s huge growth in Southeast Asia, several investors including V ventures had offered to bail out the troubled cryptocurrency exchange.

However, discrepancies began appearing after investigators started looking at internal operations including the Earn program. According to a disclosure letter dated November 30, Zipmex told rescue investor V Ventures that Zipmex Thailand had gone beyond what it initially said about the Earn program.

“When ZipUp was initially launched in Thailand, it was promoted that bonus payments derived from marketing costs supported by Zipmex Asia and that there was no deployment of funds,” the company said in the disclosure letter. “However, this was not the case and funds (both ZipUp and non-ZipUp funds) were deployed and part of the proceeds received were used to pay the bonuses under the ZipUp program.”

The Thai SEC has also accused Zipmex of offering staking services, which are not legally permitted within the country, through the ZLaunch and ZipLock programs.

As such, the Thai regulatory agency has given Zipmex until January 12 to clarify the said issue before any legal action is scheduled.

“In case of failure to deliver within such specified time, the SEC would deem that you do not wish to clarify and will proceed with further actions as deemed appropriate accordingly,” the Thai SEC noted.

Bigger Picture

The collapse of Zipmex, Terra Luna, FTX, and many other crypto firms has exposed the dirty games played in the industry to make a profit at the expense of customers. Regulators around the world are working to combat bad actors in the promising blockchain technology and cryptocurrency market. Moreover, governments around the world have identified these sectors with high potential for local employment and economic expansion.

As such, more clear regulations are expected to enter the crypto market in the coming months from different countries. In the future, the failures of Zipmex and other crypto firms will help shape the growth of the digital assets industry.next

Thailand Regulators Investigate Troubled Zipmex Over Earn Program ZipUp+

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