Thai SEC says Bitkub concealed a 2021 theft for nearly six months, while the exchange says the decision was intended to prevent a bank run.
Thailand’s Securities and Exchange Commission has filed a criminal complaint against Bitkub, the country’s largest crypto exchange, and two former directors over reports submitted after a previously undisclosed 2021 hack.
The regulator said hackers stole crypto worth about 1.7 billion baht (or approximately $51 million) from Bitkub in May 2021. Still, daily filings submitted between May 10 and October 30 showed no material change in the company’s assets, according to the SEC. The regulator said:
“The SEC further found that Bitkub did not report to the SEC in its daily net capital report (Form DA 1) in a manner consistent with the theft incident.”
Form DA 1 reports are used by the regulator to track an exchange’s financial position. The SEC alleged that Bitkub’s reports therefore contained false information and gave the impression that customer assets were being held normally and that the company had suffered no damage.
Sakolkorn Sakavee and Thaweesap Rawan, Bitkub’s directors at the time, were responsible for submitting the reports and were named alongside the company in the complaint.
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Bitkub Says Silence Prevented Withdrawals
Bitkub acknowledged in a statement that people responsible for its disclosures had “decided not to disclose” that one of the company’s wallets had been stolen. It said the decision was intended “to prevent a bank run.” The exchange added:
“Had a bank run occurred, customers could have suffered widespread losses, and Thailand’s digital-asset industry could also have been harmed.”
Bitkub also said the incident “did not result from fraudulent conduct” by those named in the complaint. The crypto exchange added that its co-founders later absorbed the loss by buying the same cryptocurrencies in the same amounts, although the stolen assets were never recovered.
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