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Thailand’s Securities and Exchange Commission has filed a criminal complaint against Bitkub Online and two former directors over regulatory reports submitted after a 2021 cyberattack.
The regulator alleges the exchange failed to show the impact of a theft involving 16 cryptocurrencies worth about 1.7 billion baht, or roughly $50 million, in daily capital reports filed for nearly six months.
Daily Reports Showed No Asset Decline After the 2021 Theft
The cyberattack occurred in May 2021 and led to customer assets being withdrawn from Bitkub’s platform. The SEC said reports submitted between May 10 and October 30 showed no material reduction in the exchange’s asset balance linked to the theft.
Those daily net capital filings, known as Form DA 1, gave the regulator the impression that customer assets remained under normal custody and that Bitkub had not suffered damage from the incident.
The SEC alleges the filings contained false statements under Thailand’s Emergency Decree on Digital Asset Businesses. It filed the complaint with the Economic Crime Suppression Division on July 23.
Complaint Names Bitkub and Two Former Directors
The case names former directors Sakolkorn Sakavee and Thaweesap Rawan, who were responsible for submitting the reports during the period under investigation. Both men face allegations tied to the exchange’s disclosures.
The SEC also accuses them of making false entries in company documents intended to deceive the regulator. A criminal complaint does not establish guilt. Police investigators will review the case before prosecutors decide whether to bring charges, which could then proceed to Thailand’s courts.
Bitkub Says Founders Replaced the Stolen Crypto
Bitkub said it delayed disclosing the wallet compromise because it feared that news of the attack would trigger mass withdrawals before the stolen assets could be replaced. The company said its co-founders personally purchased the same types and amounts of cryptocurrency that had been taken.
The SEC’s notice states that Bitkub began procuring replacement assets from October 31, 2021. Bitkub maintains that customers did not suffer losses and that current operations are unaffected. It also said customer assets remain fully backed and that its security, governance, and compliance controls have been strengthened since the attack.
Police Will Decide Whether the Case Proceeds to Prosecution
The dispute now centers on whether Bitkub’s stated concern about customer confidence affects the SEC’s allegation that the reports failed to reflect the theft.
The Economic Crime Suppression Division will determine the next step after reviewing the SEC’s evidence and the responses from the exchange and former directors.
Until then, the case remains a criminal complaint rather than a court finding against Bitkub or the two former directors.
