Why did the Thailand SEC file criminal charges against Bitkub?

Thailand's SEC launches criminal charges against Bitkub Exchange and two former directors

Thailand's Securities and Exchange Commission (SEC) has filed criminal charges against cryptocurrency exchange Bitkub Online and two former directors, accusing them of submitting false regulatory reports after a cyber attack in 2021. The attack caused approximately 1.7 billion baht (approximately US$50 million) in digital asset losses.

Summary of the case

The Thai SEC has accused Bitkub and two former directors of containing false information in daily net working capital reports submitted after the May 2021 hacking incident. Regulators said reports filed between May 10 and October 30, 2021 failed to accurately reflect the decline in digital asset holdings on exchanges-attackers stole 16 different cryptocurrencies. The SEC said the omission created the illusion that client assets were intact, giving outsiders the illusion that the exchange had not suffered losses from the incident.

Relevant authorities pointed out that the stolen assets had been replenished on October 31, 2021, but believed that the impact of the theft should have been reflected in the reports submitted during that period. The indictment alleges Bitkub and two former directors of violating multiple provisions of Thailand's digital assets regulations through alleged false disclosures. The SEC said the case will enter Thai criminal investigation procedures before deciding whether to prosecute or go to court.

Bitkub disputes regulatory allegations

Bitkub responded on social media platform X that the case involved a decision when to disclose a wallet breach, rather than allegations of fraud or customer loss. The exchange said it deliberately delayed disclosure of the incident to prevent possible runs while working to recover stolen assets. According to the company, its co-founder later purchased digital assets of equal value to make up for the stolen funds, saving neither the customer nor the company from financial losses.

Bitkub also stated that since the incident, the company has strengthened its governance structure, compliance processes and security controls. Bitkub was established in 2018 and has now grown into Thailand's largest cryptocurrency exchange. According to CoinGecko's ranking, the platform has the highest trust score among Thai exchanges, with daily trading volume of approximately US$712 million as of this article's publication.

The lawsuit comes as Bitkub continues to explore a public listing. The company confirmed in December 2025 that it was considering an initial public offering, including the possibility of listing in Hong Kong.

Tighter regulation: Thailand expands the coverage of encryption regulations

This enforcement action comes as Thai authorities continue to strengthen supervision of various areas of the digital asset market. Earlier this month, the Bank of Thailand and the SEC began reviewing high-value stablecoin transactions after discovering that some transfers may have circumvented regular financial reporting requirements. According to reports, the central bank governor said authorities are using data analysis tools to review large transactions, particularly the USDT involving Tether, while assessing whether further regulatory measures are needed.

In addition to stablecoins, regulators have also stepped up their review of large cash withdrawals and withdrawals, gold transactions and bank accounts related to online gambling as part of their anti-money laundering efforts. At the same time, Thailand continues to advance policies to expand regulated crypto markets. In February this year, the Thai government approved relevant amendments, recognizing that cryptocurrencies can be used as qualified underlying assets under the Derivatives Trading Act and allowing regulated futures and options contracts to use digital assets such as Bitcoin as reference targets.

After the amendment was passed, the SEC was responsible for drafting detailed licensing rules and contractual requirements. Regulators subsequently proposed relaxing licensing requirements for digital asset companies, allowing companies to apply for derivatives licenses as a single legal entity without establishing a separate company. During the consultation process, the SEC Secretary-General said the proposal would support cryptocurrencies as an investment asset class while giving investors access to more regulated products with appropriate regulatory safeguards.