Thailand’s Securities and Exchange Commission (SEC) has ordered Zipmex, Thailand’s second largest cryptocurrency exchange after Bitkub, to resume trading and digital asset withdrawals within three days after an official announcement is issued, following the company’s freezing of digital assets and withdrawals last week, prompting complaints by concerned investors who stand to lose a total of up to 300 million baht.

The order also followed a meeting yesterday (Monday) between SEC executives, led by Secretary-General Ruenvadee Suwanmongkol, and officials of the Department of Special Investigation (DSI), convened to discuss measures to protect hundreds of investors from the risk of loss, after the company suspended trading and withdrawals from ZipUp+ and Z Wallet under Zipmex Global last Wednesday.

Invoking Article 35 of the Executive Decree on Digital Asset Businesses, the SEC ordered Zipmex Thailand to resume trading and to allow investors to deposit or withdraw their digital assets from the Trade Wallet.

The SEC also ordered Zipmex Thailand to exercise caution, in accordance with standard professional practices, to protect investor assets for their benefit.

Many investors have lodged complaints with the SEC, the Stock Exchange of Thailand and the Technology Crime Suppression Division against Zipmex Thailand, fearing that they may lose their investments.

Zipmex Thailand deposited its digital assets with ZipUp+, a Zipmex Global (Singapore) high-yield product. Last Wednesday, Zipmex Global announced on Twitter a suspension of withdrawals until further notice, after encountering a combination of circumstances beyond their control and the resulting financial difficulties of its business partners.

Zipmex Global’s liquidity troubles stem from its exposure to two crypto lenders, Babel Finance which also suspended withdrawals, and the Celsius Network, which has filed for bankruptcy.

The company is reportedly seeking to raise at least US$ 50 million to repair its balance sheet.

Last week, former finance minister and Kla party leader Korn Chatikavanij suggested that the SEC take legal action against Zipmex Thailand, claiming that the cryptocurrency exchange had used its customers’ digital assets to make profits and to lend to others.

Korn said that, according to the SEC’s edict, cryptocurrency exchanges are not allowed to lend their investors’ assets to the others to make profit.

Source: Thai Public Broadcasting Service