Key facts
- Thailand's SEC filed a criminal complaint against Bitkub and two former directors.
- The complaint alleges false disclosures related to a 2021 cyberattack.
- Approximately $50 million in digital assets were stolen in the 2021 cyberattack.
- Bitkub claims it delayed reporting the incident to prevent a bank run and that losses were covered.
Thailand's Securities and Exchange Commission (SEC) has initiated a criminal complaint against Bitkub Online, one of the country's largest digital asset exchanges, and two of its former directors. The complaint stems from allegations of false reporting concerning a cyberattack in May 2021, which resulted in the theft of approximately 1.7 billion baht ($50 million) worth of digital assets.
The SEC stated that while Bitkub replaced the stolen assets by October 31, 2021, the exchange failed to accurately reflect the incident's impact in its daily net liquid capital reports submitted between May 10 and October 30, 2021. This omission, according to the regulator, created the impression that customer assets were unchanged and that the exchange had not incurred losses.
Bitkub has disputed the SEC's allegations, asserting that the case relates to disclosure decisions made after the cyberattack rather than fraudulent conduct. The exchange explained that it delayed the public disclosure of the wallet compromise to prevent a bank run while it worked to recover the stolen assets. Bitkub also stated that its co-founders later purchased equivalent digital assets to cover the loss, ensuring neither the company nor its customers suffered financial harm. The company added that it has since enhanced its governance, compliance, and security measures.
The case is proceeding through investigation and potential court proceedings. The scrutiny comes as Bitkub's parent company is reportedly considering a public listing, bringing renewed focus to the transparency and governance practices of the prominent Thai crypto business.