Thailand's SEC Accuses Bitkub of Hiding $50M Hack Losses
Thailand's Securities and Exchange Commission (SEC) has filed a criminal complaint against Bitkub Online Co. Ltd., a cryptocurrency exchange, and two of its former directors. The SEC accuses the executives of intentionally hiding losses from a $50 million hack in their official reports between May and October 2021.
The hack occurred on May 10, 2021, when 16 types of digital assets were stolen. Regulators found that Bitkub failed to reflect the loss in its daily net capital reports during this time period. The SEC claims the executives made false entries in official company documents to mislead regulators into believing customer assets were intact.
Bitkub has maintained that it chose not to publicly disclose the hack to avert a run on the exchange, which could have destabilized the domestic crypto market. Co-founders absorbed the loss by buying replacement assets in identical amounts and currencies, guaranteeing that customer funds remained intact.
The case has been handed over to local police for further investigation, after which prosecutors will determine whether to formally indict the company and its former directors.