The Securities and Exchange Commission (SEC) has warned investors to refrain from investing in shares and digital tokens of DB Hold Plc, saying the company is not licensed to sell securities and digital tokens.
After receiving notifications from investors, the SEC found that the company had been persuading people to invest in newly issued shares and digital tokens, with a combined value of around 500 million baht, via social media, according to the SEC.
The funds were said to be used to invest in projects such as a digital platform for exchanging goods and services using a cryptocurrency named "DB coin" or "DB token", blockchain technology and other business projects.
"The aforementioned actions could be deemed as persuading and issuing newly issued securities and digital tokens to the public without permission from the SEC. Therefore, investors are advised to be sceptical when investing with DB Hold," the SEC said. "The SEC has ordered DB Hold to stop persuading investors to invest in [its projects]."
A royal decree on digital asset businesses went into effect on May 14. The new legislation was enacted to regulate digital asset offerings and businesses undertaking digital-asset-related activities.
All market participants, including ICO issuers, digital exchanges, brokers and dealers involved with digital asset transactions, are required to register with the SEC within 90 days of the effective date.
The participants must also receive the Finance Ministry's approval to engage in the digital asset business.
Separately, the Stock Exchange of Thailand is discussing measures with the SEC and other state agencies to safeguard against fraud through cryptocurrencies and share purchases in listed companies, said SET president Pakorn Peetathawatchai.
Conducting a Know Your Customer (KYC) procedure, initiating a suitability assessment and examining stock transactions in the capital market are measures aimed at enhancing investors' protection, Mr Pakorn said.
The recent scam is not a result of trading in the stock market, but rather using over-the-counter transactions to evade transparency, and this is difficult for financial regulators to detect, he said.
An ongoing investigation has revealed that a Finnish man, Aarni Otava Saarimaa, was allegedly tricked by Mr Jaravijit into transferring 5,564 bitcoins with a market value of 979 million baht, with the ultimate goal of investing in a digital currency called Dragon Coins.
.png?w=600)
