“Transparency is key in building trust,” said a market analyst amid rising scrutiny of Thailand’s largest crypto exchange. The Securities and Exchange Commission (SEC) has leveled criminal charges against Bitkub, accusing the crypto platform of hiding losses following a cyberattack in 2021. Authorities claim the exchange failed to properly report a $50 million digital asset theft, sparking an investigation that now targets two former directors personally.
The controversy centers on a cyber heist in May 2021 that drained roughly 1.7 billion baht from Bitkub’s wallets. Although the stolen digital assets were replenished by the end of October the same year, the SEC asserts that Bitkub’s financial reports during the recovery period downplayed the breach’s impact. Specifically, daily net liquid capital filings between May and October allegedly omitted the true extent of losses. The watchdog views these inaccuracies as a breach of Thailand’s Emergency Decree on Digital Asset Businesses, prompting a criminal complaint and referral to the Economic Crime Suppression Division.
Bitkub’s handling of the hack has drawn intense criticism because the stolen assets involved 16 cryptocurrencies valued at approximately $50 million. Instead of immediately disclosing a dip in assets, Bitkub replaced the losses quietly. The two former directors, Sakolkorn Sakavee and Thaweesap Rawan, are charged with approving misleading reports that obscured the full scope of the breach. The exchange refutes these claims, arguing the delay in disclosure was meant to protect operations while securing the assets. It also highlights subsequent upgrades in compliance and security frameworks to prevent future incidents.
This latest legal challenge arrives amid ongoing regulatory pressure. Bitkub has faced prior enforcement actions over insider trading allegations and suspected market manipulation. Plans for a takeover by Siam Commercial Bank fell through due to unresolved compliance issues. The case further clouds Bitkub’s prospects, especially as its parent company contemplates going public. Similar regulatory tightenings across the crypto sector emphasize the growing importance of transparent reporting and accountability.
