Thailand SEC sues Bitkub over hack disclosure

Thailand's Securities and Exchange Commission (SEC) filed a criminal complaint against crypto exchange Bitkub and two former directors, Sakolkorn Sakavee and Thaweesap Rawan, for allegedly submitting false regulatory reports after a May 2021 cyberattack that resulted in the theft of 16 types of digital assets worth about 1.7 billion baht ($50 million). The SEC alleges that Bitkub's daily net capital reports from May 10 to Oct. 30, 2021, did not reflect the loss, misleading regulators into believing customer assets were intact. Bitkub disputes the allegations, stating it delayed disclosure to prevent a bank run and that its co-founders personally replaced the stolen assets, leaving customers unharmed. The case has been referred to the Thailand — Economic Crime Suppression Division for investigation. Separately, the Thailand — Bank of Thailand and SEC are examining high-value stablecoin transactions, while Thailand has approved crypto derivatives and proposed easing licensing requirements for digital asset businesses.