Thailand’s Securities and Exchange Commission (SEC) has taken legal action against Bitkub Online, the country’s largest crypto exchange, and two of its former directors, Sakolkorn Sakavee and Thaweesap Rawan. The complaint stems from accusations that Bitkub submitted misleading regulatory reports following a significant cyberattack in May 2021 that resulted in the theft of digital assets worth roughly 1.7 billion baht, or about $50 million.

The SEC alleges that between May 10 and October 30, 2021, Bitkub’s daily net liquid capital reports failed to accurately reflect the loss of 16 different cryptocurrencies stolen during the hack. This omission allegedly gave the false impression that customer funds were safe and that the exchange had not sustained any financial damage from the breach. Although Bitkub reportedly restored the stolen assets by October 31, 2021, the regulator argues that the interim reports should have revealed the impact of the theft. The complaint accuses Bitkub and its former directors of violating multiple provisions of Thailand's digital asset laws through these false disclosures.

The case will now proceed through Thailand’s criminal investigation process before prosecutors decide whether to move forward with charges or court proceedings.

Bitkub responded to the allegations on X, stating the issue centers on the timing of disclosing the hack rather than fraud or customer losses. The exchange said it delayed announcing the breach deliberately to prevent panic withdrawals while it worked to recover the stolen funds. Bitkub’s co-founders later bought replacement digital assets equal to the amount taken, ensuring no losses for customers or the company. The firm also highlighted improvements to its governance, compliance, and security measures since the incident.

Founded in 2018, Bitkub has rapidly become Thailand’s leading crypto platform, with a daily trading volume near $712 million and top trust scores among Thai exchanges according to CoinGecko. The criminal complaint arrives as Bitkub explores plans for a public listing amid Thailand’s broader push to tighten crypto regulations and enforcement.

Market reaction to the news was muted, with Bitkub’s trading volumes remaining stable despite the legal developments.