Thailand’s Securities and Exchange Commission has filed a criminal complaint against crypto exchange Bitkub Online and two former directors, Sakolkorn Sakavee and Thaweesap Rawan, over alleged false financial reporting tied to a 2021 cyberattack. According to the regulator, Bitkub suffered a hack in May 2021 in which 16 types of digital assets worth more than $50 million were stolen. The SEC said those losses were not reflected in the exchange’s daily net capital reports, known as Form DA 1, submitted between May 10 and Oct. 30, 2021.
The case has been referred to Thailand’s Economic Crime Suppression Division for investigation, while prosecutors will decide whether to bring formal charges. The SEC said the filings gave the impression that customer assets remained intact and that the company had not incurred financial losses. Although Bitkub later acquired replacement assets in late October 2021, the regulator maintains the interim reports still amounted to false statements. In a July 23 statement, Bitkub said current customer holdings are secure and accounts remain complete, adding that a co-founder purchased replacement assets in the same quantities and token types to absorb the loss.
Thailand’s Securities and Exchange Commission has filed a criminal complaint against crypto exchange Bitkub Online and two former directors, Sakolkorn Sakavee and Thaweesap Rawan, alleging they submitted false financial reports between May and October 2021.
The case has been forwarded to the Economic Crime Suppression Division, or ECD, for investigation. Prosecutors will decide whether formal charges should be filed.
Complaint centers on reporting after the May 2021 hack
The SEC said Bitkub was hit by a cyberattack in May 2021, with 16 types of digital assets stolen and losses exceeding $50 million. Its investigation found that Bitkub did not reflect those losses in its daily net capital filings, Form DA 1, submitted from May 10 to Oct. 30, 2021.
According to the regulator, the executives involved allegedly made false entries in official company documents, leading regulators to believe that customer assets remained intact and that the company had not suffered financial losses. Bitkub later completed the purchase of replacement assets in late October 2021, but the SEC said the reports filed during the intervening period still constituted false statements.
Bitkub says customer holdings remain safe
In a statement dated July 23, Bitkub said current customer holdings are safe and its accounts are complete. The exchange also said one of its co-founders bought replacement assets in the same quantities and token types and absorbed the losses, adding that the cyber theft had been reported to law enforcement on May 10, 2021.
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