On July 19, the Securities and Exchange Commission (SEC) announced that Zipmex Co., Ltd. (Zipmex) was found guilty of providing misleading information regarding the trading prices of digital assets.
The SEC concluded that Zipmex had published or endorsed statements that might mislead investors regarding the trading prices of digital assets. This was due to discrepancies between the actual trading volume and price of the Zipmex Token (ZMT) and the information displayed on the Zipmex website. The presented information was found to be inaccurate and inconsistent, potentially misleading investors, the public, and the SEC.
Between 2021 and 2022, Zipmex allegedly concealed the trading prices of certain coins, including those with low trading volume. They also displayed fabricated trading volumes and prices that did not reflect reality. This might have led investors to misinterpret the actual trading volume or price of digital assets.
The SEC deemed these actions a violation of the Digital Asset Business Act B.E. 2561 (Digital Asset Act), specifically Section 40. This section prohibits the publication or guarantee of information that might mislead investors regarding the price of digital assets and, consequently, affect their investment decisions.
Mr. Ekkarap Yimwilai, the individual responsible for Zipmex’s operations, was also held accountable, as he failed to prevent the aforementioned offense. Under Section 94 in conjunction with Section 40 of the Digital Asset Act, Mr. Yimwilai is subject to the same punishment as Zipmex.
The SEC confirmed the guilt of both Zipmex and Mr. Ekalap, referring the case to the Technology Crime Suppression Division (TCSD) for further legal proceedings.
This indictment marks the beginning of the criminal enforcement process. The determination of culpability will now involve investigation by law enforcement, prosecution by the public prosecutor, and ultimately, the discretion of the court. The SEC will monitor the progress of this prosecution and cooperate with relevant agencies to ensure the Digital Asset Act is enforced effectively.
Zipmex Co., Ltd. has had its digital asset business license revoked as a digital asset exchange and broker, effective May 28, 2024. However, as a limited company, Zipmex retains its legal rights, obligations, and liabilities and remains subject to legal action.
SEC Finds Zipmex Guilty of Misleading Information Regarding Digital Asset Trading Prices
On July 19, the Securities and Exchange Commission (SEC) announced that Zipmex Co., Ltd. (Zipmex) was found guilty of publishing or providing certifications that may cause a material misunderstanding regarding the trading price of digital assets. This verdict comes following an investigation revealed inconsistencies in the information presented by Zipmex regarding the trading price and volume of its Zipmex Token (ZMT).
Key Findings of the SEC Investigation
- Misleading Price and Volume Data: The SEC discovered that the trading price and volume of ZMT displayed on Zipmex’s website were inaccurate, potentially misleading investors and the public regarding the true market activity.
- Omission of Low-Priced Coin Trading: Zipmex was found to have concealed the trading prices of certain digital assets that traded at low prices, further contributing to the inaccurate portrayal of market data.
- Violation of Digital Asset Act: By presenting misleading information, Zipmex violated Section 40 of the Digital Asset Business Act B.E. 2561 (Digital Asset Act), which pertains to the publication or provision of guarantees that may cause misunderstandings regarding the price of digital assets.
SEC’s Action and Next Steps
The SEC determined that both Zipmex and its responsible officer, Mr. Ekkarap Yimwilai, were guilty of violating the Digital Asset Act. The case was then forwarded to the Technology Crime Suppression Division (TCSD) for further legal action. The SEC emphasized that this indictment is merely the beginning of the criminal enforcement process, subject to further investigation and potential prosecution.
Impact on Zipmex and its Business License
Following the SEC’s findings, Zipmex’s digital asset business license was revoked as a digital asset exchange and broker, effective from May 28, 2024. This revocation signifies a significant setback for the company’s operations. However, Zipmex continues to exist as a limited company with legal rights, responsibilities, and potential liabilities, leaving it open to future legal actions.
Consequences of Misleading Information
The SEC’s action once morest Zipmex highlights the importance of transparency and accuracy in the digital asset market. Misleading or false information can erode investors’ trust, disrupt market stability, and hinder the overall development of the digital asset ecosystem.
Importance of Regulatory Oversight
This case signifies the crucial role of regulatory bodies like the SEC in ensuring the integrity and fairness of the digital asset market. Effective regulatory oversight is vital to protect investors, prevent market manipulation, and promote responsible growth within the industry.
