Woofun AI reports that Thailand’s Securities and Exchange Commission (SEC) has initiated criminal proceedings against Bitkub Online and two former directors, accusing them of submitting false disclosures to regulators regarding a major security breach. The regulator’s announcement on Thursday marks a significant escalation in oversight for one of the nation’s leading digital asset platforms, specifically targeting the accuracy of financial reporting during a period of crisis.

The complaint identifies former directors Sakolkorn Sakavee and Thaweesap Rawan as the individuals responsible for the company reports during the investigation window, alleging that their submissions contained material inaccuracies related to a 2021 cyberattack. This legal action arrives at a critical juncture for Bitkub, as its parent company evaluates the possibility of a public listing, thereby intensifying scrutiny on the firm’s transparency and corporate governance structures.

The core of the regulatory dispute centers on a cyberattack that occurred in May 2021, which resulted in the theft of 16 distinct types of digital assets from Bitkub’s systems. The SEC quantified the value of the stolen assets at approximately 1.7 billion baht, equivalent to $50 million at the time of the incident. According to the regulator’s findings, Bitkub allegedly replaced the missing assets by October 31, 2021, yet failed to accurately document the financial impact of the breach in its official filings. The SEC contends that this failure to reflect the loss in daily net liquid capital reports constituted a violation of digital asset regulations, creating a misleading picture of the exchange’s financial health during the aftermath of the attack.

Structurally, the regulator’s allegations focus on the specific timeline between May 10 and October 30, 2021, during which Bitkub submitted daily net liquid capital reports that did not show a significant reduction in assets following the theft. The SEC argues that these reports gave the false impression that customer assets remained unchanged and that the exchange had not suffered any financial losses from the cyber incident. By omitting the temporary depletion of funds, the reports allegedly violated multiple provisions of Thailand’s digital asset framework, which mandates accurate and timely disclosure of material events affecting an exchange’s liquidity and solvency. The case will now proceed through formal investigation, potential prosecution, and subsequent court proceedings, with the outcome likely to set a precedent for regulatory compliance in the region.

Bitkub has firmly disputed the SEC’s allegations in a statement posted on X, characterizing the case as a misunderstanding of disclosure decisions made in the wake of the May 2021 cyberattack rather than evidence of fraudulent conduct. The exchange explained that it deliberately delayed public disclosure of the wallet compromise to prevent a bank run while it worked to address the loss of the stolen assets. According to Bitkub, its co-founders subsequently purchased equivalent digital assets to cover the stolen funds, ensuring that neither the company nor its customers incurred any financial losses. The company emphasized that its actions were driven by a commitment to stability and customer protection, rather than an intent to deceive regulators or the public about its financial position.

Per Woofun AI, the company further stated that it has since strengthened its governance, compliance, and security systems to prevent similar incidents and improve transparency. Founded in 2018, Bitkub has established itself as one of the largest crypto exchanges in Thailand, maintaining a prominent position in the market despite the current legal challenges. According to CoinGecko, the platform ranks first among Thai crypto exchanges by trust score, reflecting its standing in the industry. At the time of publication, Bitkub recorded a daily trading volume of approximately $712 million, underscoring its significant role in the country’s digital asset ecosystem and its continued operational activity amid the regulatory dispute.

In December 2025, Bitkub confirmed that it was considering an initial public offering (IPO), including a potential listing in Hong Kong, signaling its ambition to expand its capital base and reach international investors. The SEC’s complaint adds a layer of complexity to these plans, as potential investors and partners will likely scrutinize the company’s past regulatory interactions and governance practices. We reached out to Bitkub for additional comment on the SEC’s complaint and its IPO plans but had not received a response by publication. This marks a critical test for the exchange’s ability to navigate regulatory pressures while pursuing growth and transparency in a rapidly evolving market landscape.