Bitkub faces criminal complaint over false regulatory reports

A criminal complaint has been filed against Bitkub Online Co Ltd and two former directors by the Securities and Exchange Commission (SEC) over allegations of submitting false regulatory reports following a 1.7-billion-baht cyber-attack in 2021. The case has reignited questions about the company's corporate governance, transparency, and its ability to regain investor trust. The regulator stated that hackers withdrew digital assets across 16 cryptocurrencies from Bitkub on May 10, 2021, with estimated losses of 1.7 billion baht. Although customers were eventually made whole by October 31, 2021, the SEC alleges Bitkub failed to disclose the incident properly in its daily net capital reports for over five months, instead reporting no material deterioration in its financial position. Sakolkorn Sakavee, founder and former chairman of Bitkub Capital Group Holdings, released a video statement accepting sole responsibility. He admitted to personally altering the regulatory filings without informing fellow directors, executives, or employees, fearing that disclosure would trigger panic withdrawals, a collapse in cryptocurrency prices, and a "bank run" that could destroy the exchange. Mr Sakolkorn stated that the founders used their own funds to repurchase the stolen digital assets until every customer was fully reimbursed. He apologized for concealing the incident, resigned from Bitkub's boards, and pledged full cooperation with regulators. Mr Sakolkorn also stressed that SEC inspections conducted in 2025 confirmed customer assets remained fully intact, and Bitkub has since invested over 400 million baht to strengthen cybersecurity, now storing customer assets with global custodians including BitGo and Coinbase. Industry observers suggest the legal case may not immediately threaten Bitkub's operations but could have a more damaging reputational impact. Udomsak Rakwongwan, co-founder of decentralised derivatives platform FWX and a lecturer at Kasetsart University, believes Bitkub is more likely to experience a gradual decline than a sudden collapse. The exchange has already lost its market pole position, with Binance TH overtaking Bitkub in trading volume, according to coinmarket.com. Bitkub's market share, once exceeding 90% of Thailand's crypto trading market, has reportedly fallen to roughly half that level or less. According to Mr Udomsak, the biggest challenge is no longer technology but investor confidence. Years of undisclosed information and questions over corporate governance could make fundraising, attracting strategic partners, and pursuing future expansion significantly more difficult. He also told the Bangkok Post that the criminal investigation leaves former executives exposed to potential legal risks if prosecutors proceed. The cyber-attack occurred on May 10, 2021, just days before Bitkub launched its KUB Coin on May 20, 2021. Initially priced at 30 baht, the token surged during the crypto bull market, reaching an all-time high of around 580 baht in December 2021, partly fueled by Siam Commercial Bank's (SCB) announcement of plans to acquire a controlling stake in Bitkub for 17.85 billion baht, valuing the company at approximately 35 billion baht and making it Thailand's first crypto unicorn. The acquisition was later cancelled in August 2022. Today, KUB trades near 24 baht, representing a decline of roughly 96% from its peak. The SEC's criminal referral does not indicate guilt, as the case must still pass through investigation, prosecution, and court proceedings. Whether Bitkub ultimately recovers may depend less on the outcome of the legal process than on whether it can rebuild the trust that once made it the face of Thailand's digital asset industry.