Thai Securities Regulator Charges Bitkub Over Hack Cover-Up
Thailand's Securities and Exchange Commission has charged cryptocurrency exchange Bitkub and two former executives for failing to disclose a May 2021 cyber attack that resulted in the theft of 1.7 billion baht in customer digital assets acr
On July 23, the Securities and Exchange Commission (SEC) filed charges against Bitkub Online Limited and two former company directors with the Economic and Financial Crime Division for submitting false information to the SEC. The charges allege violations of the Digital Asset Business Act regarding the failure to accurately report the impact of a cyber attack that occurred in May 2021, which resulted in the theft of approximately 1.7 billion baht in customer digital assets across 16 different cryptocurrencies.
The SEC investigation found that Bitkub was attacked in May 2021 and customer digital assets were stolen from the exchange. Although Bitkub subsequently replaced the stolen assets starting October 31, 2021, the company failed to disclose this significant incident in its daily net liquidity fund reports submitted to the SEC between May 10 and October 30, 2021. This omission constitutes filing false statements in violation of the Digital Asset Business Act.
Former directors Sakolkroj Sarakwee and Thaweestrap Ravarun, who were responsible for submitting the required reports during the period of the cyber attack, have also been charged. Both men are additionally accused of making false statements in company documents with intent to deceive the SEC, falsely indicating that customer assets remained safely stored and unharmed. The SEC will now forward the case to prosecutors and the courts for investigation and adjudication. The SEC stated it will monitor the case's progress and fully cooperate with relevant agencies to enforce the Digital Asset Business Act.
