- Wash trading: This is a crypto activity where a trader buys and sells digital assets to themselves, thereby creating a false market impression geared towards trading volume increase.
Thailand’s Securities and Exchange Commission (SEC) has accused Bitkub, the country’s largest cryptocurrency exchange, and four other offenders of their alleged wash trading activities.
The individuals involved in the case will have to pay a fine of over $600,000.
According to a press release on Tuesday (September 27, 2022), the Thai SEC claimed that two individuals – Mr. Anurak and Mr. Sakon Srakawee – operated a wash trading exercise on the Bitkub platform.
However, the SEC noted that the agency initially decided to apply civil sanctions against the three offenders, but Bitkub and the two individuals reportedly refused to comply with the civil sanctions.
Therefore, the regulator is calling for the prosecution of the offenders in a civil court.
The Thai SEC seeks the prohibition of Anurak and Sakon from being a director or holding any executive positions.
In addition to their filings, the offenders should be banned from cryptocurrency trading.
Also, Bitkub and the individuals in the case were ordered to pay 24,161,292 baht (approx. $636,000).
The reason for fine is for reimbursement to the SEC for its investigation expenses.
A separate Announcement
In a separate announcement, the regulator also launched wash trading allegations connected to local digital asset exchange ,Satang Corporation.
According to the SEC, two offenders, LLC Fair Expo and Mikalai Zahorski, allegedly carried out wash trading activity on Satang.
The Regulatory body revealed that LLC Expo Fair and Mikalai did not comply with civil sanctions and would be prosecuted in a civil court.
Thereby, both parties were fined 12 million baht ($317,660).