Crypto exchange Zipmex suspends trading activity in Thailand

November 26, 2023 Coin Telegraph

Cryptocurrency exchange Zipmex has announced it has suspended trading in Thailand due to ensuring it is compliant with local regulations.

Cryptocurrency exchange Zipmex has announced it is taking immediate action by suspending all digital asset trading in Thailand as part of its efforts to comply with regulations.

According to a statement issued on November 25, Zipmex has opted to temporarily halt its operations to align with regulatory requirements with the Securities and Exchange Commission (SEC) in Thailand:

“To ensure that the business operations of Zipmex Company Limited ("Company") are appropriate and compliant with the criteria set by the SEC Thailand, the company is required to temporarily suspend the trading and depositing of all types of assets, effective from November 25, 2023, at 1:00 PM onwards.”

Additionally, the statement emphasized that following the year-end, customers must directly contact the exchange if they wish to withdraw funds or assets.

“After January 31, 2024, when the company suspends withdrawals through the website and mobile application, customers are required to contact Customer Support for withdrawals,” the statement noted.

This follows a series of reported challenges for Zipmex in recent times.

On April 18, Cointelegraph reported that Zipmex had a delay in paying its customers due to an attempt to "maximize returns for customers."

The exchange requested another extension that would allow for a longer moratorium on its debt in Singapore amid the firm's liquidity issues.

Meanwhile, on January 10, Zipmex was the focus of a new probe by the Securities and Exchange Commission (SEC) of Thailand for a breach of new local rules.

On January 11, Zipmex was reportedly just given one day to admit or deny to the SEC if it had been operating as a digital asset fund manager without permission.

Meanwhile, investigations into the exchange had been going on for some time. In September 2022, the SEC had filed a local police report on Zipmex claiming that the exchange and its co-founder Akalarp Yimwilai of non-compliance with local laws.

In September 2022, the SEC had filed a local police report on Zipmex claiming that the exchange and its co-founder Akalarp Yimwilai of non-compliance with local laws.

Furthermore, the SEC explained that Zipmex had not provided information on digital wallets and crypto transactions in compliance with the country's Digital Assets Act.

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Zipmex requests 2-month extension from Singapore court for restructuring plan

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A ruling from Singapore’s High Court originally allowed Zipmex a moratorium until December 2022 to handle debt relief amid reported liquidity issues.

Cryptocurrency exchange Zipmex has requested another extension which would allow for a longer moratorium on its debt in Singapore amid the firm’s liquidity issues.

In an April 18 announcement, Zipmex said it was currently in negotiations with investors in an attempt to “maximize returns for customers” following a delay in payments. The firm said its Asia arm had filed a request in Singapore’s courts to extend its existing moratorium period by two months. According to the exchange, it will use the extra time to plan and reopen Z Wallet withdrawals.

Zipmex originally filed for a moratorium allowing the firm to postpone payments in July 2022, amid a tumultuous year for the crypto market — the company had roughly $5 million in exposure to Celsius. The platform had suspended withdrawals earlier that month, while CEO Marcus Lim did not deny reports that the firm was facing insolvency.

Singapore’s courts granted Zipmex’s moratorium request, giving the firm until December 2022 to come up with a restructuring plan. However, the platform has continued to request extensions on the moratorium, with the most recent one likely pushing its deadlines to June.

It’s unclear to which investor Zipmex was referring in its latest announcement. In March, venture capital firm V Ventures reportedly did not provide a payment of more than $1 million necessary for Zipmex to avoid liquidating certain operations and stop distributing payroll to employees.

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Update (April 18 at 9:18 PM UTC): Zipmex said in response to an inquiry from Cointelegraph that a Singaporean court granted the extension until April 23.

Zipmex says it may resume 100% of Z wallet withdrawals subject to conditions

February 15, 2023 Coin Telegraph

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The creditors have until February 21, 2023, to vote on a new scheme proposed by the company.

According to a new press release on Feb. 15, Thai cryptocurrency exchange Zipmex stated that it sent a new scheme to all firm's eligible creditors through its scheme manager KordaMentha. As told by Zipmex, the creditors have until Feb. 21, 2023 to vote on the scheme and "will receive 100% of their digital assets in the Z Wallet" if the scheme is approved and the cryptocurrency closes its pending investment deal.

Last July, Zipmex filed for debt relief in Singapore after its counter-party and crypto lending firm Babel Finance halted withdrawals, citing "unusual liquidity pressures." The exchange was also impacted by the bankruptcy of crypto lending firm Celsius. Together, the two counterparties owe Zipmex $48 million and $5 million, respectively.

Zipmex subsequently paused withdrawals on its platform after the revelations last July. However, withdrawals were resumed within two days for its fiat currency and trading funds service Trade Wallet. That said, the firm's Z Wallet, used for Zipmex services and receipt of earnings and bonuses, remains in the debt moratorium state with gradual resumption of withdrawals.

Cointelegraph previously reported on Dec. 2, 2022, Thai Venture Capital V Ventures will acquire Zipmex for $100 million in cash and crypto. According to court documents, Zipmex plans to use cryptocurrency assets received from the transaction to unlock frozen customer accounts on the exchange by April 2023. Subsequent to the development, on Jan. 11, 2023, the Securities and Exchange Commission of Thailand began a new probe of Zipmex, alleging a breach of local rules. The regulatory agency has also warned investors to carefully review documents issued by the company before making a deal.

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The Cyber Crime Investigation Bureau in Thailand will now consider whether to pursue legal action against Zipmex following the SEC's allegations.

Thailand’s Securities and Exchange Commission, or SEC, has accused crypto exchange Zipmex and its co-founder Akalarp Yimwilai of non-compliance with local laws and referred the matter to the police.

In a Wednesday announcement, the Thai SEC alleged Zipmex had not provided information on digital wallets and crypto transactions in compliance with the country’s Digital Assets Act. The regulator claimed that both Akalarp and the exchange forwarded incomplete information outside of an approved timeframe without providing a “reasonable cause” or excuse.

“Such actions by Zipmex and Mr. Akalarp are considered to be non-compliance with the competent official's orders, which is an offense and has a penalty under Section 75 of the Digital Assets Act,” said the regulatory body. “The SEC has accused Zipmex and Mr. Eklarp to the [Cyber Crime Investigation Bureau], to consider further legal action.”

ก.ล.ต. กล่าวโทษ Zipmex และผู้บริหาร ต่อ บช.สอท. กรณีไม่ปฏิบัติตามคำสั่งพนักงานเจ้าหน้าที่ https://t.co/VDTTcmaNsw
— ThaiSEC_News (@ThaiSEC_News) September 7, 2022

Zipmex responded to the SEC’s earlier request for information in a Wednesday blog post, saying it was “in the process of compiling relevant documents that belong to both Zipmex itself and Zipmex Pte. Ltd., an entity which is not under the regulatory jurisdiction of the Thai SEC”:

“Any disclosure of Zipmex Pte. Ltd.’s information must be carried out with the utmost care and consideration to ensure that regulations are fully complied with and standards such as data privacy are duly observed.”

The crypto exchange suspended withdrawals in July, citing a “combination of circumstances beyond [its] control.” At the time, Zipmex co-founder Marcus Lim denied reports the exchange was experiencing financial difficulties. However, the firm later filed for debt relief in Singapore and was granted more than three months of creditor protection following a decision from the country’s High Court. The exchange has until Dec. 2 to present a restructuring plan.

In a Sept. 1 message on its Facebook page, Zipmex said it will be holding an online town hall meeting for both English and Thai speakers on Sept. 14 with its financial and legal advisers. The firm operates crypto exchanges in Thailand, Australia, Indonesia and Singapore.

Cointelegraph reached out to Zipmex, but did not receive a response at the time of publication.

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Zipmex requests meetings with Thai regulators to discuss ‘recovery plan’

August 26, 2022 Coin Telegraph

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The firm stated that its potential investors will also attend the meetings, which will include Zipmex, Thailand's SEC, and government agencies.

Asian crypto exchange Zipmex has requested meetings with Thailand's Securities Exchange Commission (SEC) and other regulators to discuss the firm’s “recovery plan.”

In a statement on Aug. 25, Zipmex said it had submitted a letter requesting meetings with the securities regulator, which will also be attended by the firm’s potential investors.

“We have requested meetings with Thailand’s Securities Exchange Commission and regulators in the country where we operate to introduce our investors to regulators and present our recovery plan to government agencies.”

Though the company was tight-lipped on who the investors may be, Zipmex noted that it was in “advanced stages” of discussion with two investors after signing three memorandums of understanding (MOUs) over the last month.

The funding round was initially reported in June, suggesting the potential capital injection was not tied to the company's more recent financial woes.

“The investors we have been in discussion with fully understand our potential and also share our vision and mission of developing the digital economy in Thailand and Southeast Asia," said Zipmex.

Despite the lack of names at this stage, the funding round is reportedly expected to be worth $40 million at a valuation of $400 million. Notably Coinbase has already made an undisclosed strategic investment into Zipmex during Q1.

The requested discussions with the SEC come one month after the regulator launched a hotline for investors impacted by the withdrawal suspensions to report their complaints on the matter.

On Aug. 15, Cointelegraph reported that the company had scored more than three-months of creditor protection, protecting the exchange from potential creditor lawsuits until Dec. 2, 2022 while it comes up with a restructuring plan.

With regulator eyes on Zipmex, the upcoming discussions should bear important information about how the company can proceed moving forward. Zipmex stated that it will soon provide further clarification on the matter around the middle of September.

Zipmex also revealed on Thursday that wallet transfers for its native token ZMT between its Z Wallets and Trade Wallets have been re-established this week, marking further progress as the company works to get fully operational again. This is only available via its website and not through the Zipmex App at this stage however.

Zipmex has re-enabled transfers from your Z Wallet to Trade Wallet for #ZMT. You’ll now be able to access your available ZMT by transferring the tokens across wallets on the Zipmex website https://t.co/Uxk0qZkGBp

More Info https://t.co/La4nW15EKx #Zipmex #ZipmexAsia pic.twitter.com/K4SQ096MZi
— ZIPMEX (@zipmex) August 25, 2022

“By resuming the Z Wallet service and doing everything possible to resolve the aforementioned problems. I can confirm that we will continue to move forward to resume services to serve our customers effectively and fairly,” said Dr. Akalarp Yimwilai, co-founder of Zipmex.

The company operates compliant exchanges in Thailand, Indonesia, Singapore and Australia. As a result of the market volatility this year and exposure to firms such as Babel Finance and Celsius, Zipmex officially paused wallet withdrawals in late July.

Since then, Zipmex has gradually restored withdrawals for a select number of assets held in Z Wallets, while trade wallet withdrawals were promptly re-enabled in July.

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