Thailand’s Securities and Exchange Commission has taken legal action against Bitkub Online and two of its former directors for allegedly hiding a $47 million hack that occurred in May 2021. The complaint, now with Thailand’s Economic Crime Suppression Division, accuses the exchange of concealing the cyberattack and submitting false financial reports for nearly six months.
Hackers drained 16 types of cryptocurrencies from Bitkub, totaling about 1.7 billion baht, but the company’s daily net liquid capital reports from May 10 to October 30, 2021, misleadingly showed no drop in assets. This sustained deception violated Thailand’s Digital Asset Business Decree, with potential prison terms and fines for those responsible.
Legal Fallout and IPO Delay
Former directors Sakolkorn Sakavee and Thaweesap Rawan face allegations of submitting these inaccurate documents to regulators, hiding the theft and misleading authorities on customer asset integrity. The case is now under police and prosecutor review to decide on formal court proceedings.
Bitkub postponed its Stock Exchange of Thailand initial public offering last November and is currently considering a $200 million fundraising round in Hong Kong, reflecting the ongoing fallout from the security breach. The situation adds a cautionary note for crypto exchanges under growing regulatory scrutiny globally.
