Thailand SEC files criminal complaint against Bitkub over 2021 hack disclosure

Thailand's Securities and Exchange Commission filed a criminal complaint against Bitkub Online and former directors Sakolkorn Sakavee and Thaweesap Rawan over reporting tied to a 2021 hack, widening pressure on the country's dominant licensed crypto exchange. The case stems from a May 2021 cyberattack in which 16 types of digital assets worth about 1.7 billion baht, or roughly $48 million to $50 million, were stolen. The SEC said Bitkub's daily net liquid capital filings between May 10 and Oct. 30, 2021 did not reflect the reduction in the exchange's digital-asset holdings after the theft and instead created the impression that customer assets remained intact and the company had not suffered losses from the incident. Authorities said the stolen assets were replaced by Oct. 31, 2021, but argued the impact should still have been shown in the reports during the intervening period. The regulator said the matter will proceed through Thailand's criminal investigation process before any decision on prosecution or court proceedings. Bitkub disputed the allegations, saying the case concerns the timing of disclosure rather than fraud or customer losses. The exchange said it delayed announcing the wallet compromise to prevent a bank run, that its co-founders later bought equivalent digital assets to replace the stolen funds, and that customers and the company suffered no financial losses. Bitkub also said it has strengthened governance, compliance procedures and security controls since the incident. The complaint comes as Thailand broadens oversight of digital assets. Regulators have been reviewing high-value stablecoin transactions, cash movements, gold trading and accounts linked to online gambling as part of anti-money laundering efforts, while also advancing rules to allow regulated derivatives tied to cryptocurrencies and proposing easier licensing structures for digital-asset businesses. Bitkub, founded in 2018 and ranked first among Thai exchanges by trust score on CoinGecko, had about $712 million in daily trading volume at the time of publication and is also exploring a possible initial public offering, including a potential Hong Kong listing.