The Bitkub Case Explained: How Thailand's Biggest Crypto Exchange Went From Unicorn to Criminal Investigation

Just a few years ago, Bitkub represented Thailand's cryptocurrency boom. It was the country's largest digital asset exchange, the creator of KUB Coin, and the startup that achieved unicorn status after Siam Commercial Bank (SCB) announced plans to acquire a controlling stake in the company.

At its peak in late 2021, Bitkub appeared destined to become Thailand's undisputed crypto champion.

Five years later, the company faces its biggest governance challenge.

Thailand's Securities and Exchange Commission (SEC) has filed a criminal complaint against Bitkub Online Co., Ltd. and two former executives, accusing them of submitting false regulatory reports following a massive cyberattack in 2021. Although no customers ultimately lost money, regulators argue that the company failed to accurately disclose the financial impact of the incident, raising broader questions about transparency, corporate governance, and investor protection in Thailand's rapidly evolving crypto industry.

A Hack Worth 1.7 Billion Baht

According to the SEC, on May 10, 2021, hackers stole digital assets across 16 different cryptocurrencies worth approximately 1.7 billion baht.

The hack was one of the largest security incidents in Thailand's digital asset industry.

However, the criminal complaint is not centered on the theft itself.

Instead, regulators argue that Bitkub continued submitting daily capital adequacy reports (known as Form DA1) that failed to reflect the company's true financial position after the attack. Between May and October 2021, the exchange allegedly reported that its capital remained sufficient despite the significant loss of digital assets.

The SEC believes those reports gave regulators an inaccurate picture of the company's financial condition during one of the most critical periods in its history.

The case has now been referred to Thailand's Economic Crime Suppression Division, which will conduct a criminal investigation before prosecutors decide whether to bring formal charges.

Why Didn't Bitkub Immediately Reveal the Hack?

The company's explanation offers a different perspective.

Following the SEC's announcement, Bitkub founder Sakolkorn Sakavee released a public video statement admitting that he personally altered regulatory reports without informing other directors or employees.

He said the decision was made to prevent a bank run.

According to Sakolkorn, publicly disclosing the hack before replacing the stolen assets could have triggered panic withdrawals, destabilized both the exchange and Thailand's broader cryptocurrency market.

Instead, the founders used their own funds to purchase replacement digital assets.

By October 31, 2021, all customer balances had been fully restored.

Bitkub maintains that no customer suffered financial losses and that the strategy ultimately protected users rather than harmed them.

Sakolkorn has since resigned from all executive positions and says he is fully cooperating with investigators.

Transparency Versus Stability

The Bitkub case highlights a difficult question facing financial institutions during crises.

Should companies disclose negative information immediately, even if doing so risks triggering panic?

Or can temporary secrecy be justified if it prevents greater damage and customers ultimately suffer no financial losses?

Traditional financial regulators generally prioritize transparency because markets rely on timely and accurate information to function efficiently.

From the SEC's perspective, withholding material information—regardless of management's intentions—undermines market integrity and weakens regulatory oversight.

Bitkub, however, argues that immediate disclosure would have produced exactly the type of market panic regulators seek to avoid.

The courts will ultimately determine whether the company's actions violated Thailand's Digital Asset Business Act.

From Market Leader to Competitive Pressure

Even before the investigation, Bitkub's dominance had already begun to fade.

Several years ago, the exchange controlled more than 90% of Thailand's cryptocurrency trading market.

Since then, competition has intensified, particularly following the arrival of Binance TH and other licensed digital asset platforms.

Today, analysts estimate Bitkub's market share has fallen dramatically, with the company no longer enjoying the near-monopoly position it once held.

Industry observers argue that the investigation may accelerate this trend because financial services ultimately depend on trust as much as technology.

While exchanges can upgrade security systems, rebuilding confidence after governance controversies is often much more difficult.

A Different Story for Customers

Despite the legal dispute, Bitkub emphasizes that customer assets remain fully protected.

The company says it has invested more than 400 million baht in cybersecurity since the 2021 incident.

Client assets are now stored with international custodians, including BitGo and Coinbase Custody, while the exchange has adopted internationally recognized security standards such as ISO 27001, ISO 27701, SOC 2 Type I, and the NIST Cybersecurity Framework.

According to Bitkub, SEC inspections conducted in 2025 confirmed that customer assets were fully backed.

The company also ranks among the world's highest-rated crypto exchanges for cybersecurity according to independent industry assessments.

The Rise—and Fall—of KUB Coin

The timing of the cyberattack proved especially significant because it occurred just days before the launch of KUB Coin, Bitkub's native token.

The token debuted on May 20, 2021, at around 30 baht.

Later that year, enthusiasm surrounding Thailand's crypto market and SCB's planned acquisition sent KUB Coin soaring to approximately 580 baht, while Bitkub's valuation reached roughly 35 billion baht, making it Thailand's first crypto unicorn.

The momentum did not last.

SCB ultimately canceled the acquisition in August 2022, and KUB Coin has since fallen to roughly 24 baht, losing about 96% of its value from its all-time high.

The token's trajectory mirrors the broader evolution of Thailand's crypto market—from explosive optimism during the 2021 bull market to today's more regulated and competitive environment.

A Defining Test for Thailand's Crypto Industry

The SEC's complaint does not mean Bitkub has been found guilty.

Investigators must first determine whether sufficient evidence exists to support criminal charges before prosecutors decide whether to bring the case to court.

Regardless of the legal outcome, however, the investigation represents a significant milestone for Thailand's digital asset industry.

It demonstrates that as cryptocurrencies become more integrated into the financial system, regulators are increasingly focused not only on cybersecurity and financial stability but also on disclosure standards, governance, and accountability.

The case also signals that crypto exchanges are beginning to face expectations similar to those applied to traditional financial institutions.