Thailand's securities regulator has accused the cryptocurrency exchange Bitkub of concealing a cyberattack that drained roughly $50 million in digital assets. The incident, which occurred in May 2021, saw hackers steal 1.7 billion baht across 16 different cryptocurrencies from the exchange's hot wallets.
The Allegations
The Securities and Exchange Commission of Thailand (SEC) alleges that Bitkub failed to disclose the breach in a timely manner. Instead, the exchange tried to cover up the scale of the losses, according to the regulator. Bitkub did not report the incident to authorities or inform its users until much later, violating disclosure requirements.
What Was Stolen
The stolen funds included a mix of major cryptocurrencies and smaller tokens. The total value at the time of the hack was approximately 1.7 billion baht, equivalent to around $50 million. The SEC's investigation found that the attack targeted Bitkub's hot wallet system, which is connected to the internet and thus more vulnerable than cold storage.
Bitkub's Response
Bitkub has not yet publicly responded to the SEC's allegations. The exchange previously acknowledged a security incident in 2021 but claimed that customer funds were fully covered. The regulator's latest statement suggests that the company may have downplayed the severity of the breach.
Potential Consequences
The SEC is now considering penalties against Bitkub, which could include fines, suspension of operations, or revocation of its license. The case highlights ongoing concerns about cybersecurity and transparency in Thailand's crypto sector. The regulator has been tightening oversight of digital asset platforms in recent months.
The investigation remains ongoing, and Bitkub has yet to issue a formal response to the SEC's findings. The outcome could set a precedent for how crypto exchanges in Thailand handle security breaches and disclosure obligations. The SEC has not announced a timeline for its decision.
