- Thailand’s SEC filed criminal complaints against Bitkub and two former directors over alleged false customer asset reports linked to cyberattack.
- Regulators allege exchange filings failed to reflect losses from stolen cryptocurrencies valued near 1.7 billion baht during mandatory reporting periods.
- Economic Crime Suppression Division will investigate the complaint before prosecutors decide whether criminal charges should proceed while investors remain cautious.
Thailand’s Securities and Exchange Commission has filed a criminal complaint against cryptocurrency exchange Bitkub Online and two former directors over allegations they submitted false information about customer assets following the platform’s 2021 cyberattack. The complaint has been referred to the Economic Crime Suppression Division, where investigators will determine whether the case should proceed to prosecutors. However, the filing does not constitute a conviction because the courts will decide liability if formal charges follow.
According to the SEC, the complaint targets former directors Sakolkorn Sakavee and Thaweesap Rawan, who were responsible for submitting the exchange’s daily net capital reports during the period under review. Regulators allege the reports failed to reflect the financial impact of the cyberattack despite significant losses involving customer-held digital assets.
Authorities linked the allegations to reporting obligations under Thailand’s Digital Asset Businesses Emergency Decree. Consequently, investigators will examine whether the submitted documents accurately represented the exchange’s financial position during the affected months.
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SEC Says Reports Failed to Reflect Customer Asset Losses
The SEC stated that a cyberattack in May 2021 resulted in unauthorized withdrawals involving 16 cryptocurrencies held through Bitkub. Regulators estimated the affected customer assets were worth approximately 1.7 billion baht.
According to the regulator, Bitkub filed Form DA 1 reports between May 10 and October 30, 2021. However, those filings allegedly showed no material change in customer assets despite the theft. As a result, the SEC argues the reports presented an inaccurate picture of the exchange’s custody of customer funds.
Bitkub later replaced the missing digital assets beginning on October 31, 2021. Nevertheless, investigators found that the earlier reports did not disclose the impact of the incident before the replacement occurred.
Moreover, the SEC cited Section 76 of Thailand’s Digital Asset Businesses Emergency Decree, which governs false statements submitted by licensed digital asset businesses. Regulators argue the filings did not accurately represent changes resulting from the cyberattack.
Former Executives Face Additional Allegations
Beyond the reporting claims, the SEC also accused Sakolkorn and Thaweesap of recording false information in Bitkub’s corporate documents. According to regulators, those records indicated that no damage had occurred despite the loss of customer assets.
Additionally, the complaint cites Section 88(2), which covers false entries in company records intended to deceive another party. Authorities allege both former directors played key roles in preparing and submitting the disputed documents during the reporting period.
However, investigators have not disclosed which cryptocurrencies were affected or the quantities involved. Likewise, Bitkub had not issued a public response within the information released by the SEC.
Economic Crime Police Begin Investigation
The SEC has forwarded the complaint to Thailand‘s Economic Crime Suppression Division for further investigation. Inquiry officers will collect evidence, interview relevant parties, and determine whether sufficient grounds exist to recommend prosecution. Subsequently, public prosecutors will review the findings before deciding whether to file criminal charges.
Separately, the regulator reminded investors to use only licensed digital asset service providers. Officials warned that customers dealing with unauthorized operators may face fraud, withdrawal problems, and limited legal protection. Furthermore, investors can verify licensed companies through the SEC website and the SEC Check First application. The regulator also encouraged the public to report suspicious activity through Hotline 1207 and its official reporting channels.
Conclusion
The criminal complaint marks another step in Thailand’s review of Bitkub’s handling of customer asset reporting following the 2021 cyberattack. Nevertheless, the investigation remains ongoing, and any criminal liability will depend on the findings of investigators, prosecutors, and the courts.
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