It has come to the attention of Thailand’s securities regulator that the troubled cryptocurrency exchange Zipmex, which is in the process of being acquired, may have violated local regulations in the sale of specific digital asset products.
According to a report by Bloomberg, on December 28 the nation’s Securities and Exchange Commission sent a letter to the chief executive officer of Zipmex Thailand, Akalarp Yimwilai, indicating that some of the firm’s operations may be in violation of rules governing the conduct of business involving digital assets.
The SEC suggested that the company may have been acting as a “digital-asset fund manager without authority,” and it provided Zipmex with a deadline of January 12 for providing clarification.
A person acquainted with the case stated last month that V Ventures, a subsidiary of Thoresen Thai Agencies, is in the process of acquiring Zipmex Asia for approximately $100 million. Following its collapse as a result of the lengthy bear market in virtual coins, the Asian cryptocurrency exchange has been undergoing reorganization.
The regulator’s inquiries related to the ZipUP and ZipUP+ initiatives that the Bangkok-based exchange, which enabled consumers to earn returns on their tokens from October 2020, offered. Zipmex decided to outsource the operation of their investments to Babel Finance.
Creditor Support for the Recovery Process
It was stated earlier that Zipmex intends to go through a recovery procedure with the final goal of fully reactivating customer withdrawals. A vote will be held to determine whether or not Zipmex’s creditors agree to the arrangement.
The recovery process is an arrangement, the specifics of which have not been released; nonetheless, Zipmex anticipates that it will become effective around the beginning of April of this year, which is when its protection from creditors will expire.
The goal of this effort on the part of the exchange is to streamline the process by providing “a more administratively light solution,” which will take the shape of a private settlement between Zipmex and the consumer.
The exchange obtained creditor protection for all of its entities at the beginning of the last month, and it will remain in effect until April. It was also claimed that Zipmex was close to finalizing a takeover transaction with venture capital fund V Ventures for $100 million, which would give V Ventures a 90% ownership in the exchange.
