Thailand’s Securities and Exchange Commission (SEC) has issued a warning to investors about engaging with Zipmex.
The Singapore exchange had sent lawyers to clarify its restructuring plan with the SEC, as well as sending privacy agreements under its ZipUp+ programme to all creditors and customers by email on 16 December 2022.
In July, Zipmex Thailand temporarily suspended digital asset withdrawals from the company’s Z Wallet after Zipmex Singapore partners Babel Finance and Celsius Network collapsed.
Z Wallet is part of the company’s ZipUp+ investment account managed by Zipmex Singapore.
The SEC said in a statement that it “received complaints from Zipmex customers that its privacy agreement is unclear and ufair, and the SEC shares this view.”
“We also found these personal agreements lack information that is material to the customer’s decision,” the regulator continued.
The SEC highlighted that the agreement allows customers to be terminated from ZipUp+ and allows them to withdraw assets from Z Wallte only on a date and time annoucned by Zipmex Pte.
In October, Zipmex said an inquiry into the company’s due diligence process by law firm Morgan Lewis Stamford LLC found “no process breaches or instances of misconduct.”
Zipmex said in the letter that release of digital assets from Z Wallet constitutes full payment of debts as well as the final settlement of all rights or claims.
Furthermore, the letter said Zipmex, the Zipmex Group, any director, officer or employee from any country have no obligation or responsibility to custmers under all applicable laws or regulations.
The SEC has thereby cautioned customers “who are qualified as Zipmex’s creditors to carefully consider the agreements offered by the company before making a decision.”
It added that the body has asked Zipmex to take action as soon as possible “to ensure operations are fair and non-discriminatory.”
Zipmex will hold a meeting on 21-22 December 2022 to explain the agreements and restructuring plans for customers. The SEC described Zipmex’s actions as “discriminatory” for not treating customers equally, and said the firm should expedite the provision so Zipmex can receive all information.