Zipmex

Between July and September 2022, Zipmex Co., Ltd. ("Zipmex") failed to comply with orders from regulatory officials to submit information regarding its business and operations. This included data on the wallets used to store customers' assets and details of digital asset transfer or withdrawal transactions. Zipmex did not provide the requested information within the specified timeframe and, even after receiving reminders from the officials, only submitted incomplete data. Additionally, Zipmex delayed submitting the requested information without reasonable cause or justification.

Between May 8, 2022, and July 20, 2022, Zipmex Co., Ltd. ("Zipmex"), as a digital asset business operator in the categories of digital asset exchange and digital asset brokerage, engaged in activities beyond its authorized digital asset business without permission from the Securities and Exchange Commission (SEC). The company solicited its customers to use the ZipUp+ program of Zipmex Pte. Ltd., benefiting from fees related to the exchange of customers' digital assets. Furthermore, Zipmex did not have a system in place to prevent conflicts of interest or to control risks to customers' assets.

Between September 15, 2021, and May 7, 2022, Zipmex Co., Ltd. ("Zipmex"), as a digital asset business operator in the categories of digital asset exchange and digital asset brokerage, did not comply with the regulations announced for the storage of customers' digital assets in the digital asset deposit project for returns in Thailand. The company failed to segregate the assets under its custody in a manner that clearly identified them as customers' assets beyond any doubt. Furthermore, these digital assets might have been used for other purposes.

Zipmex Co., Ltd. ("Zipmex"), as a digital asset business operator in the categories of digital asset exchange and digital asset broker, is required to report the results of a penetration test to the Securities and Exchange Commission (SEC) by July 14, 2022. However, Zipmex reported the results of the penetration test on August 8, 2022, which was a late submission and did not comply with the established regulations.

Since January 1, 2022, Zipmex Limited, as a digital asset business operator, providing digital asset exchange and digital asset brokerage services, does not have policies, measures, and procedures for delegating operational responsibilities to other persons related to the operation of digital asset businesses, which is not in accordance with the prescribed criteria."

Zipmex Limited, as a digital asset brokerage and exchange, failed to report the summary of assignments to other individuals responsible for tasks related to the operation of the business for the fiscal year 2022 within the specified deadline according to the criteria announced, which was December 31, 2022.

From approximately mid-2020 to September 7, 2022, Zipmex Limited ("Zipmex"), as a digital asset brokerage and exchange, failed to establish proper management structure and systems, including inadequate staffing as per the specified criteria."

Zipmex Limited, a digital asset brokerage and exchange, is required to submit its financial statements for the fiscal year 2022 and announce them on the Zipmex website within the Securities and Exchange Commission's specified deadline of May 2, 2023. However, Zipmex failed to submit its 2022 financial statements and did not announce them on its website within the given timeframe."