Legal Proceedings Against Bitkub
The Thai Securities and Exchange Commission (SEC) has initiated legal proceedings against the cryptocurrency trading platform Bitkub and two of its previous executives, asserting that they submitted misleading reports following a significant security breach in 2021. The allegations are rooted in a cyberattack that occurred in May 2021, during which hackers accessed and drained approximately 1.7 billion baht (around $47 million) worth of 16 different digital currencies from Bitkub’s accounts.
Allegations of Misleading Reports
Notably, the SEC claims that between May and October of that year, Bitkub continued to report its financial position without acknowledging the massive loss, thus violating provisions set forth in the Digital Asset Business Decree in Thailand.
The two former directors implicated, Sakolkorn Sakavee and Thaweesap Rawan, allegedly manipulated reports to create an illusion that customer funds remained secure. The complaint has been submitted to Thailand’s Economic Crime Suppression Division, and it is now up to law enforcement and prosecutors to evaluate whether the case will proceed to court.
Bitkub’s Response
In response, Bitkub has stated that the situation revolves around a reporting decision made five years ago and reassured customers that their funds remain secure. The company explained that the decision to not disclose the hacked wallets was made in an attempt to prevent a panic-driven rush by customers to withdraw their funds, which could have jeopardized the exchange.
Moreover, they asserted that co-founders used personal resources to purchase replacement digital assets, thus ensuring that neither the business nor its clients faced financial losses. The SEC had verified the integrity of Bitkub’s holdings as of September 2025, according to the firm.
Accountability and Leadership Changes
In a recent Facebook video, Sakolkorn took full responsibility for the decision-making process, claiming he had alone altered the financial documents without the knowledge of other executives or staff. He expressed that his intention was to prevent customer alarm and potential withdrawals that could cripple the platform.
He also conveyed that the founders compensated for the stolen assets out of their own pockets until all customers were made whole. Sakolkorn has since stepped down from his leadership roles within the company and has committed to cooperating with the ongoing regulatory inquiry.
Impact on Bitkub’s Market Position
This incident occurs during a critical period for Bitkub, which was once the leading cryptocurrency exchange in Thailand but now faces stiff competition from Binance’s local branch, Binance TH, currently ranked 31st in worldwide exchange listings, compared to Bitkub’s 68th position as per CoinMarketCap.
The exchange has postponed its plans for an initial public offering on the Stock Exchange of Thailand, previously slated for November 2025, due to a downturn in the market. They are now considering a $200 million IPO in Hong Kong as an alternative.
