bitkub

Thai SEC alleges Bitkub CTO committed insider trading

“The act of Mr. Wajanasathian is an offense of buying KUB coins by being a person who knows or possesses inside information,” said Thailand’s financial regulator.

Thailand’s Securities and Exchange Commission, or SEC, announced enforcement actions against the chief technology officer of crypto exchange Bitkub, who allegedly used insider information around the purchase of Bitkub Coin (KUB).

In a Tuesday announcement, the Thai SEC said it had fined Bitkub chief technology officer Samret Wajanasathian 8,530,383 baht — roughly $234,000 at the time of publication — and intended to bar him from being a director or executive officer at any crypto firm for a year. The financial regulator alleged Wajanasathian purchased roughly $61,000 worth of KUB tokens in advance of an announced deal in which Siam Commercial Bank, or SCB, said it would purchase a 51% stake in the crypto exchange. The news drove the price of KUB up by 101%.

“The act of Mr. Wajanasathian is an offense of buying KUB coins by being a person who knows or possesses inside information,” said the SEC.

The Thai SEC said Wajanasathian still has to sign a memorandum of consent before the “period of prohibition from being a director or executive” at a crypto firm could take effect. The chief technology officer’s LinkedIn page showed his position at Bitkub was unchanged at the time of publication, but he did not appear on the company website.

Related: Thai SEC approves four crypto firms despite Zipmex woes

On Thursday, the SCB announced that it had abandoned a $500-million plan to become the majority shareholder of Bitkub due to concerns about the crypto exchange “resolving various issues,” according to recommendations from the SEC. It’s unclear whether the bank was privy to the financial regulator’s impending enforcement actions against Bitkub’s chief technology officer.

Siam Commercial Bank abandons plans to purchase $500M stake in crypto exchange Bitkub

The bank cited concerns with Bitkub “resolving various issues,” according to recommendations from the country’s Securities and Exchange Commission without a definite timeline.

Thailand’s oldest bank has scrapped plans it first announced in November 2021 to become the majority shareholder of crypto exchange Bitkub.

In a Thursday announcement, Siam Commercial Bank’s SCB X Group said it would no longer be paying 17,850 million Baht — roughly $536 million in November and $497 million at the time of publication — to acquire a 51% stake in the Thailand-based crypto exchange. The bank cited concerns with Bitkub “resolving various issues” according to recommendations from the country’s Securities and Exchange Commission without a definite timeline.

According to the SCB, the company conducted a due diligence exercise on Bitkub following the November 2021 announcement it planned to become a majority shareholder, resulting in “many opportunities for cooperation in various areas in order to develop and improve the business operations” of the crypto exchange. However, its board of directors passed a resolution to terminate the deal on Thursday.

“SCB X Public Company Limited and SCB Securities Co., Ltd. remain committed to their strategic plans to expand into businesses relating to blockchain technology and digital assets, which will play an important role in Thailand’s economy and financial industry,” said the bank.

Siam Commercial Bank CEO Arthit Nanthawittaya originally proposed the acquisition based on the growth of businesses in the digital asset space since 2019 and the expected value in the long term. At the time, the company hinted at aiming to strengthen and grow the digital asset ecosystem in Thailand.

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In January, Thailand’s SEC and central bank announced regulations and usage limitations on crypto in an effort to stop the asset from being traded on unlicensed platforms. Bitkub is one of the few crypto exchanges in Thailand operating with the approval of the country’s SEC, but the restrictions reportedly caused a delay in the deal between the firm and the SCB.