SEC Files Charges Against Bitkub and Two Former Directors Over False Reporting of 1.7 Billion Baht Hack

The Securities and Exchange Commission (SEC) has taken decisive legal action by filing charges against Bitkub Online Co., Ltd. (Bitkub) and two former company directors with the Economic Crime Suppression Division (ECD) for submitting false statements and preparing misleading documents.

Tracing back to the 1.7 billion baht cyber theft incident.

According to SEC investigations, Bitkub's platform was targeted by a cyberattack in May 2021.

This event resulted in the theft of digital assets from customers involving 16 currencies, with damages totaling approximately 1.7 billion baht from the trading platform.

The key issue leading to the charges is Bitkub's failure to truthfully report this asset loss to the SEC.

Specifically, the “Daily Net Liquidity Fund Report” (Form DJ.1) submitted from 10 May to 30 October 2021 showed no significant changes in the company's asset balances despite the theft.

Such actions constitute providing false information to the SEC, violating Section 76 of the Digital Asset Act.

However, it was later found that Bitkub had replaced the lost digital assets as of 31 October 2021.

Charges against two former top executives, Sakolkarat and Tawitthasap.

Those held responsible include Sakolkarat Sarakawi and Tawitthasap Rawun, who were directors of Bitkub during the incident and responsible for submitting the DJ.1 reports.

The SEC stated that both individuals included false information in corporate documents to deceive the SEC into believing customer assets were safely maintained without losses.

Their actions violate Section 88(2) and incur liability under Section 94 in conjunction with Section 76 of the Digital Asset Act. The SEC has thus filed charges against Bitkub, Sakolkarat, and Tawitthasap with the ECD for legal prosecution.

The case will now proceed through investigation by police, prosecution review, and judicial judgment sequentially.

The SEC confirmed it will closely monitor progress and fully cooperate with relevant agencies.

Additionally, the SEC warned investors to be cautious when dealing with unauthorized digital asset operators to avoid scams and money laundering risks, advising them to verify licensed operators via the SEC website.www.sec.or.thSuspicious leads can be reported via the hotline 1207.

Bitkub issues report affirming customer assets are safe and complete.

Shortly after the SEC announced charges, Bitkub Online Co., Ltd. promptly released a statement clarifying the facts, explaining past actions, and reaffirming investor confidence as follows.

• Explaining the information concealment to prevent panic and mass withdrawals (Bank Run): Regarding the undisclosed hack of one digital asset wallet in May 2021 (about 5 years ago), the company clarified it was not due to fraud but a decision to prevent a bank run scenario where customers withdraw assets en masse before the company could compensate, which could have caused widespread damage to clients and Thailand’s crypto industry.
• Co-founders take responsibility and cover losses: Although the stolen assets have not yet been recovered, Bitkub's co-founders took full responsibility for the losses by purchasing various digital assets to replace those lost, ensuring neither the company nor customers suffered any damage or loss from this incident.
• Affirming 100% safety of customer assets: Bitkub firmly assures that all customer assets currently held by the company are safe and intact, with the SEC having inspected and certified their security.
• Upgrading to world-class security and pursuing hackers: Bitkub has upgraded its security systems to rank among the world's top 20 exchanges according to Cer.Live, partnered with global custodians like Bitgo and Coinbase, and established an independent committee to ensure maximum transparency.

The company has also filed criminal complaints against the cybercriminals responsible and pledges to pursue legal action to the fullest extent.

Bitkub requests the public to refrain from spreading misinformation that could misrepresent the company’s financial status or asset management; violations will result in strict legal action.

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