A recent investigation by the B.C. Securities Commission shows that Einstein, a Canadian crypto exchange has lost about $16 million in customer deposits. The BCSC commissions seized the exchange after it received numerous complaints from users of the exchange.
This is not the first time a Canadian crypto exchange has lost customers’ funds. QuadrigaCX lost about $190 in customer deposits. Something that was discovered after the exchange’s founder died mysteriously.
Exchange Has No Funds
A report appearing in a Canadian news outlet says the Einstein exchange in under receivership. Thus far, it only has $45,000 in assets. This revelation was made after a limited of the platform’s records. Out of the $45,000, the exchange only has $15,000 in cryptocurrencies and $30,000 in cash.
However, notices have been sent to various banks associated with the exchange to see if it owns any other assets. As part of the effort to recover lost funds, stocks owned by senior executives at the exchange have been seized.
Einstein was shut down at the beginning of November due to various complaints leveled at the exchange by various customers. Some of the complainants who aired their grievances on Reddit were told if they did not stay silent, Einstein would terminate their accounts. Thus far, the exchange is estimated to owe customers about $16 million. However, officials from the exchange claim the figure is only $8 to $10 million.
Exchange Claims it is a Victim of Fraud
Senior officials of the Einstein exchange have not commented on the issue thus far. An official statement from the exchange claims that the exchange suffered credit card and bank draft fraud. It adds that most of the losses were in crypto assets.
Einstein was a major crypto exchange in Canada. It had about 200,000 users from all over the world. Thus far, about 300 customers have sent official claims for lost funds. When trouble started mounting the exchange’s official tried to sell it to a US-based firm. However, the deal did not succeed after rumors emerged that the exchange was attempting an exit scam.