Thai SEC Sues Bitkub Over Alleged Inaccurate Disclosures After Cyberattack

The Thai Securities and Exchange Commission (SEC) has filed a criminal complaint against Bitkub Online, a prominent cryptocurrency exchange in Thailand, along with two former directors, Sakolkorn Sakavee and Thaweesap Rawan. The SEC alleges that the company inaccurately disclosed the impact of a 2021 cyberattack, which resulted in the theft of approximately $50 million worth of digital assets.

The stolen assets were valued at around 1.7 billion baht, with 16 categories of cryptocurrencies involved in the hack. According to the SEC, Bitkub failed to reflect the full impact of the theft in its daily net liquid capital reports between May 10 and October 30, 2021.

Bitkub disputes the allegations, stating that it delayed disclosing the hack to prevent a bank run while it worked to address the loss. The company claims that it later replaced the stolen assets with equivalent holdings, ensuring that neither customers nor the exchange itself suffered financial losses.

The SEC complaint comes at a sensitive time for Bitkub, as its parent company considers a potential public listing in Hong Kong. A successful IPO would increase pressure on disclosure quality and internal controls, potentially affecting investor sentiment and due diligence findings.