Einstein crypto exchange based in the British Columbia province was recently shut down by the Canadian regulators due to massive debts owed to its clients.
According to a press report released on November 4th by the BCSC (British Columbia Securities Commission), the crypto exchange owed its clients as much as $16 million. The regulator had earlier-on requested the Supreme Court of British Columbia to appoint an auditor to go through the exchange’s accounts.
Grant Thorton Ltd., was on November 1st appointed as an interim receiver. On appointment, the audit company entered the exchange’s premises and secured them on the same day.
Legal Action and Customer Complaints
BCSC was quick to take legal action against the exchange after receiving many complaints from its clients. Most of the complaints revolved around the fact that the customers could not access the assets they had on the Einstein exchange. A company lawyer had also communicated to the BCSC that there were plans to halt its operations in 30 to 60 days.
According to Sammy Wu, a BCSC investigator, it’s believed that the exchange was improperly using its client’s assets. This was despite the fact that it owed its customers more than $16 million, a sum that is inclusive of $5 million in cash, and $11 million in cryptocurrencies.
BCSC Investigating Another Crypto Exchange
It appears that Einstein is not the only crypto that is under investigation by the BCSC. The regulator’s public affairs and media relations advisor noted that they had received several complaints about ezBtc.ca, a Nanaimo crypto exchange.
According to Elise Palmer, the media relations advisor, the reason she spoke out to the public about the ongoing investigation was that she believes that this is the right thing to do.
It’s worth noting that many Canadian investors are yet to recover from the QuadrigaCX exchange fiasco. Its cases are still pending in court with many investors being unsure of the fate of their crypto assets.