Thailand SEC files complaint against Bitkub over alleged false disclosures

Thailand’s Securities and Exchange Commission (SEC) has filed a criminal complaint against Bitkub Online, one of the country’s largest digital asset exchanges, and two of its former directors, Sakolkorn Sakavee and Thaweesap Rawan. The allegations stem from false disclosures related to a May 2021 cyberattack that resulted in the theft of approximately $50 million (1.7 billion baht) worth of digital assets from the exchange. The SEC claims Bitkub failed to accurately report the impact of the hack in its daily net liquid capital statements between May 10 and October 30, 2021, giving the false impression that customer assets were unaffected.

The SEC alleges that although Bitkub subsequently replaced the stolen assets by October 31, 2021, the company’s reports did not reflect this loss, violating several provisions of Thailand’s digital asset regulations. The case is now moving forward with an investigation and potential prosecution. The complaint highlights regulatory concerns regarding transparency and governance at Bitkub, which is significant as the company’s parent firm is reportedly considering a public listing, including a potential IPO in Hong Kong.

Bitkub denied the allegations of fraudulent conduct in a public statement on X (formerly Twitter), explaining that the disclosure was delayed intentionally to prevent a bank run while the company addressed the loss. The exchange said its co-founders personally purchased digital assets to cover the stolen funds, ensuring that neither Bitkub nor its customers suffered financial losses. The company also stated that it has since improved its governance, compliance, and security measures.

Founded in 2018, Bitkub is a leading crypto exchange in Thailand with a high trust score and about $712 million in daily trading volume according to CoinGecko at the time of reporting. The development matters because it brings scrutiny onto a major player in one of Southeast Asia’s largest crypto markets and underscores the regulators’ focus on transparency and investor protection amid increasing institutional interest in the region’s digital asset industry. Cointelegraph reached out to Bitkub for further comments on the SEC complaint and IPO plans but had not received a response by publication.