Thailand SEC Accuses Bitkub Executives of Hiding $50M Hack Losses From Regulators

Thailand’s Securities and Exchange Commission (SEC) filed a criminal complaint against crypto exchange Bitkub Online and two former directors for allegedly making false entries in official reports between May and October 2021.

The complaint, lodged with Thailand’s Economic Crime Suppression Division (ECD), names the cryptocurrency exchange alongside former company directors Sakolkorn Sakavee and Thaweesap Rawan.

According to the SEC, Bitkub suffered a cyberattack in May 2021 that breached 16 types of digital assets. Regulator investigations revealed that from May 10 to Oct. 30, 2021, the exchange failed to reflect the loss in its daily net capital reports, known as Form DA 1. The SEC alleges the executives intentionally made false entries in official company documents to mislead regulators into believing customer assets were intact and that the firm had suffered no financial damage.

The criminal complaint hands the case over to local police for further investigation, after which prosecutors will determine whether to formally indict the company and the two former directors.

However, in a statement released July 23, Bitkub defended its actions, assuring clients that all current customer holdings remain safe and fully accounted for. The exchange confirmed that leadership chose not to publicly disclose the cyberattack in May 2021 specifically to avert a run on the exchange, which could have destabilized the broader domestic crypto market.

The exchange added that it reported the cyber theft to law enforcement authorities on May 10, 2021, and continues to pursue legal remedies against the perpetrators. It emphasized that its operations, security standards, and governance have since been significantly upgraded under independent board oversight.