Thai SEC Files Lawsuit Against Bitkub Over Wash Trading Allegations

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Topp Jirayut Srupsrisopa; Photo Source: Bangkok Post

Thailand’s SEC filed civil sanctions against Bitkub and sought fines worth $634K for artificially pumping asset volumes on the exchange.

According to the notice, Bitkub and the two Bangkok-based traders were accused of wash trading. Wash trading is an illegal process wherein a trader simultaneously buys and sells the same asset to create artificial activity on the market. This tactic allows brokers and traders to inflate the market with volumes of the same asset. 

As a result, the SEC demanded Bitkub pay $634K to reimburse the agency for its investigation expenses. It also prohibited the two offenders from trading digital assets for six months. Additionally, it restricted the pair from becoming directors or executives of the SEC.

The regulatory body also fined Satang Corporation $318K over the same allegations.

The notice claims that the exchange refused to comply and settle with the SEC’s demands. In response, the agency asked a prosecutor to sue Bitkub in the Civil Court.

This is not the first time Thai SEC set its sights on Bitkub.

Earlier this year, the Thai SEC charged a fine worth $65K from the exchange and five of its members for listing the KUB token without complying with the nation’s digital asset listing regulations. Later, in August, it accused Bitkub’s CTO of insider trading on KUB tokens and demanded $235K as compensation.

Written by
Ayush Pande

Thailand’s SEC filed civil sanctions against Bitkub and sought fines worth $634K for artificially pumping asset volumes on the exchange.

According to the notice, Bitkub and the two Bangkok-based traders were accused of wash trading. Wash trading is an illegal process wherein a trader simultaneously buys and sells the same asset to create artificial activity on the market. This tactic allows brokers and traders to inflate the market with volumes of the same asset. 

As a result, the SEC demanded Bitkub pay $634K to reimburse the agency for its investigation expenses. It also prohibited the two offenders from trading digital assets for six months. Additionally, it restricted the pair from becoming directors or executives of the SEC.

The regulatory body also fined Satang Corporation $318K over the same allegations.

The notice claims that the exchange refused to comply and settle with the SEC’s demands. In response, the agency asked a prosecutor to sue Bitkub in the Civil Court.

This is not the first time Thai SEC set its sights on Bitkub.

Earlier this year, the Thai SEC charged a fine worth $65K from the exchange and five of its members for listing the KUB token without complying with the nation’s digital asset listing regulations. Later, in August, it accused Bitkub’s CTO of insider trading on KUB tokens and demanded $235K as compensation.

Written by
Ayush Pande