Thailand’s SEC filed a criminal complaint against Bitkub and two former directors over alleged false disclosures linked to a 2021 cyberattack involving $50 million in assets.
Thailand’s crypto industry is facing fresh regulatory scrutiny after authorities accused Bitkub, one of the country’s largest digital asset exchanges, of providing false information to regulators.
Thailand’s Securities and Exchange Commission (SEC) filed a criminal complaint against Bitkub Online and two former directors over alleged false reporting connected to a 2021 cyberattack, the regulator announced on Thursday.
The complaint names former Bitkub directors Sakolkorn Sakavee and Thaweesap Rawan, who the SEC said were responsible for submitting company reports during the period under investigation.
The case comes as Bitkub’s parent company considers a potential public listing, putting renewed attention on transparency and governance at one of Thailand’s most prominent crypto businesses.
The SEC said a cyberattack in May 2021 resulted in the theft of 16 types of digital assets from Bitkub, worth about 1.7 billion baht ($50 million).
The regulator alleged that Bitkub later replaced the stolen assets by Oct. 31, 2021, but failed to accurately reflect the impact of the incident in its daily net liquid capital reports.
According to the SEC, reports submitted between May 10 and Oct. 30, 2021, did not show a significant reduction in the exchange’s assets following the theft.
Former Bitkub directors Sakolkorn Sakavee (left) and Thaweesap Rawan. Source: Bangkok Post
The regulator alleged that the omission gave the impression that customer assets remained unchanged and that the exchange had not suffered losses from the attack.
The SEC accused Bitkub and the former directors of violating multiple provisions of Thailand’s digital asset regulations over the alleged false disclosures. The case will now proceed through investigation, possible prosecution and court proceedings.
Bitkub disputed the SEC’s allegations in a post on X, saying the case stems from disclosure decisions made after the May 2021 cyberattack rather than fraudulent conduct. The exchange said it delayed disclosing the wallet compromise to prevent a bank run while it addressed the loss of the stolen assets.
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
