The Securities and Exchange Commission (SEC) filed a criminal suit on Tuesday against Bitcoin Company Limited (BX), the country's first and the largest digital exchange which closed its business last year, alleging the company transferred customers' digital assets to digital wallets not authorised to hold customers' assets.
The SEC filed the charges with the Economic Crime Suppression Division to consider investigating and prosecuting the offender. It also notified the Anti-Money Laundering Office to consider taking appropriate action.
The closure of BX's operation was announced last year amid investors' growing suspicion about the company's size in terms of trading volume, value and customers and whether they were as large as its founder claimed.
The SEC said the transfer of customers' digital assets to other wallets which were not owned by customers is considered an offense under sections 85 and 87 of the Digital Asset Business Ordinance, 2018 or Digital Assets Act.
The SEC's allegation is only the beginning of criminal law enforcement process.
The next steps are identification of the offender by inquiry officials, prosecution process by prosecutors and trial and adjudication under the discretion of the court of justice, respectively.
BX, Thailand's first digital asset exchange, was founded many years ago by a foreigner who married Thai woman before bitcoin became well-known among traders in Thailand and before the Digital Assets Act was implemented.
The company notified the SEC of its closedown in April. It has ceased contact with customers who wish to retrieve their assets and laid off all employees.