Bitkub Accused of Providing False Information to Thai Regulators

Thailand's crypto industry is facing increased regulatory scrutiny following allegations that Bitkub Online, one of the country's largest digital asset exchanges, provided false information to regulators. The 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 SEC alleges that Bitkub failed to disclose the full impact of the hack on its assets. In May 2021, a cyberattack resulted in the theft of 16 types of digital assets worth approximately $50 million. The regulator claims that Bitkub later replaced the stolen assets by October 31, 2021, but did not accurately reflect this in its daily net liquid capital reports.

According to the SEC, reports submitted between May 10 and October 30, 2021, did not show a significant reduction in the exchange's assets following the theft. The regulator accuses Bitkub and the former directors of violating multiple provisions of Thailand's digital asset regulations over the alleged false disclosures.

Bitkub disputed the SEC's allegations, stating that the case stems from disclosure decisions made after the May 2021 cyberattack rather than fraudulent conduct. The exchange claimed it delayed disclosing the wallet compromise to prevent a bank run while it addressed the loss of the stolen assets.