Thailand’s largest cryptocurrency exchange, Bitkub, has being investigated by the country’s Securities and Exchange Commission (SEC) for fabricating and inflating trading activity on its website, as reported by Cointelegraph.
The Thai Securities and Exchange Commission (SEC) has ordered legal action against the crypto exchange and two individuals, alleging that the crypto platform engaged in wash trading, a practise in which investors buy and sell the same assets at the same time in order to manipulate the market by inflating volumes.
The current enforcement action against the biggest Thai crypto exchange would be the crypto exchange’s second in three months. Bitkub Capital Group Holdings Chairman Sakolkorn Sakavee was fined $216,000 and barred from holding managerial positions in the company for a year in July of this year.
According to an official statement issued by the SEC on September 27, the regulatory agency has filed a lawsuit against the cryptocurrency exchange and the two people, demanding a civil penalties and fees of approximately $634,000, as well as a six-month trading ban for the pair.
At the time of publication, Cointelegraph had not received a reaction from Bitkub.
Bitkub is one of Thailand’s biggest cryptocurrency exchanges, with daily trading volumes in the millions. However, the crypto exchange has also been the target of regulatory action in recent months. Samret Wajanasathian, the exchange’s chief technology officer, was penalised 8,530,383 baht ($234,000) for insider trading near the end of August.
(With insights from Cointelegraph)