Legal Basis for Criminal Penalties
Published 7/27/2026, 3:00:07 PM
As of July 2026, Bitkub Online Co., Ltd. and its leadership are facing a formal criminal complaint filed by the Thailand Securities and Exchange Commission (SEC) for the alleged concealment of a $47 million (1.7 billion baht) hack. The SEC argues that the exchange submitted false regulatory reports for nearly six months to hide the theft of 16 types of digital assets that occurred in May 2021 [Source: https://www.google.com/search?q=Bitkub+$47M+hack+concealment+Thai+law+criminal+penalties].
Legal Basis for Criminal Penalties
The primary legal challenge for Bitkub is not the hack itself, but the falsification of regulatory documents (Form DA 1) submitted to the SEC. Under Thai law, providing false information to a regulator is a criminal offense.
| Law / Statute | Specific Offense | Potential Criminal Penalty |
|---|---|---|
| Digital Asset Decree Section 76 | Submitting false information or reports to the SEC | Up to 5 years imprisonment and/or fines up to THB 2 million. |
| Computer Crime Act Section 14 | Entering false computer data likely to damage public/economic security | Up to 5 years imprisonment and/or fines up to THB 100,000. |
| Digital Asset Decree Section 94 | Personal liability for directors/officers for corporate violations | Direct criminal liability (imprisonment/fines) for responsible executives. |
| Criminal Code Section 341 | Fraud or public deception | Up to 3 years imprisonment and/or fines. |
[Sources: https://www.google.com/search?q=Bitkub+$47M+hack+concealment+Thai+law+criminal+penalties, https://www.google.com/search?q=Thai+Computer+Crimes+Act+penalties+for+concealing+data+breach]
Key Allegations and Evidence
- Falsified Filings: The SEC alleges that between May 10 and October 30, 2021, Bitkub’s daily net liquid capital reports showed no significant asset reduction, despite the $47M loss [Source: https://www.google.com/search?q=Bitkub+$47M+hack+concealment+Thai+law+criminal+penalties].
- Executive Admission: Former director Sakolkorn Sakavee reportedly admitted in a July 2026 statement that he personally altered and signed the reports to prevent a "bank run" and protect the industry from a crisis [Source: https://www.google.com/search?q=Bitkub+hack+July+2026+details+$47+million].
- Delayed Restitution: While Bitkub claims co-founders replaced the stolen assets with personal funds, the SEC found that the procurement of these replacement assets did not begin until October 31, 2021, rendering all prior reports factually incorrect [Source: https://www.google.com/search?q=Bitkub+$47M+hack+concealment+Thai+law+criminal+penalties].
Current Status and Risks
The case has been referred to the Economic Crime Suppression Division (ECD) of the Royal Thai Police for further investigation. Beyond the threat of imprisonment for executives, Bitkub faces severe regulatory risks:
- License Revocation: The SEC has the authority to recommend the revocation of Bitkub's digital asset exchange license.
- IPO Complications: These criminal charges significantly jeopardize Bitkub's reported plans for an Initial Public Offering (IPO) in Hong Kong.
- Civil Liability: The concealment may open the door for class-action lawsuits from users who traded on the platform while its financial health was being misrepresented.
While Bitkub argues the concealment was a strategic necessity to maintain market stability, the SEC maintains that the act of filing false reports is a strict liability offense under the Emergency Decree on Digital Asset Businesses [Source: https://www.google.com/search?q=Bitkub+$47M+hack+concealment+Thai+law+criminal+penalties].