Crypto Exchange CTO Fined $230k For Insider Trading

Thailand Securities and Exchange Commission (SEC) is not taking any fraudulent acts in the cryptocurrency industry lightly. In a recent highlight of events, the Thai SEC fined the Chief Technology Officer of Thailand’s biggest exchange Bitkub the equivalent of $230k for executing an insider trading scheme.

Thai SEC will forbid Wachanasathien from having any executive functions for a year

The SEC revealed the move on Tuesday through a press release on its official website. The regulatory body noted that it would be sanctioning Samrong Wachanasathien, CTO at Bitkub. The sanctions involve a fine of 8,530,383 baht ($230k) and a 12-month period interdicting any executive functions from Wachanasathien at Bitkub.

According to the financial watchdog, Samrong Wachanasathien purchased large amounts of Bitkub Coin—the native token of the Bitkub Exchange—prior to the planned 51% shares acquisition of Bitkub Exchange by Thailand’s SCB Securities. This happened between August and November of 2021 when both firms were proposing negotiation terms.

Having knowledge of the planned acquisition before its announcement, Wachanasathien amassed Bitkub Coin worth up to $61k. The press release notes that the SEC discovered that the purchases were not Wachanasathien’s normal behaviour. This highlights the assertion that he purchased the tokens as a result of having inside information about the imminent announcement.

SCB Securities has terminated the acquisition deal with Bitkub Exchange

Bitkub Exchange made the announcement of the planned acquisition on November 21, 2021. Furthermore, on the same day, the Bitkub Coin surged by 101%—from $1.36 to $2.74. This resulted in massive gains for Wachanasathien by virtue of his current Bitkub Coin holdings then.

Nonetheless, five days ago, SCB Securities terminated the acquisition deal. The firm issued a statement to Thailand’s Stock Exchange on August 25, revealing that Bitkub has agreed to close the deal. SCB Securities did not disclose any issues that led to the termination.

The menace of inside trading has remained a problem in the cryptocurrency industry. Notwithstanding, the scheme has gone underreported, with limited charges from financial watchdogs on perpetrators. On July 21, the American Department of Justice (DOJ) charged 3 individuals in its first ever crypto insider trading bust.