Cryptocurrency

Read

<div class="cryptonews">
 <p class="is-style-lead">The British Columbia Securities Commission (BCSC) says the now-defunct <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> exchange Einstein Exchange operated as a Ponzi <a rel="noopener noreferrer nofollow" title="scheme" href="https://thebittimes.com/tag/scheme.html">scheme</a> after becoming insolvent in 2018.</p>
 <p>The BCSC has disclosed its allegations against Michael Ongun Gokturk, the sole director of three now-defunct <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> companies Einstein Exchange Inc., Einstein Capital Ltd., and Einstein Law Corporation.</p>
 <p>In the document, the Canadian securities <a rel="noopener noreferrer nofollow" title="regulator" href="https://thebittimes.com/tag/regulator.html">regulator</a> says that after becoming insolvent in January 2018, Gokturk operated Einstein Exchange as a Ponzi <a rel="noopener noreferrer nofollow" title="scheme" href="https://thebittimes.com/tag/scheme.html">scheme</a> “by continuing to accept deposits and paying out some customers with money and <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> assets drawn from the pooled bank accounts and wallets.”</p>
 <p>Despite claims that Einstein Exchange served as a counterparty to customer trades, the BCSC contends that the firm failed to secure corresponding crypto assets to fulfill these transactions.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Canada: Einstein Cryptocurrency Exchange Loses Customers’ Funds
 </div>
 <p>Moreover, the exchange allegedly manipulated customer dashboards, providing false information that suggested order processing and availability of assets, the regulator says. The BCSC estimates that Gokturk’s actions resulted in a deprivation of approximately $19.1 million for Einstein Exchange’s customers.</p>
 <p>Launched in 2017, Einstein Exchange initially aimed at offering a trading platform for various cryptocurrencies. According to the BCSC, at one point, all three companies under the Einstein label collectively held more than $34 million worth of cash and crypto assets on behalf of their customers.</p>
 <p>In 2019, the Supreme Court of British Columbia granted the BCSC’s order and appointed the accounting firm Grant Thornton as the interim receiver to assume control of the assets of the Vancouver-based exchange.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Cryptocurrency Exchange Einstein Aims to Combat Fentanyl Epidemic
 </div> <span class="google-news-banner__label">Follow Us on Google News</span>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/canadian-crypto-platform-einstein-exchange-was-ponzi-scheme-says-local-regulator-tbt78863.html">https://thebittimes.com/canadian-crypto-platform-einstein-exchange-was-ponzi-scheme-says-local-regulator-tbt78863.html</a></p>

Canadian crypto platform Einstein Exchange was Ponzi scheme, says local regulator

TheBitTimes

Other articles published on Feb 5, 2024

Meme Coin Blues: Nearly 70% Of Shiba Inu Investors Underwater As Price Flops

Why Is Bitcoin Price Not Going Up Despite The ETFs? Expert Explains

Coinbase Identifies Bullish Factors That Will Drive A Bitcoin Bull Run In 2024

Aptos (APT) and Toncoin (TON) Price Action Appears Bullish; Investors Add More Tokens on Algotech...

Polygon’s zkEVM Awaits Major Exciting Update; Promising Memecoin Venture Takes Center Stage

Hester Pierce against ‘gag rule,’ lawmakers challenging regulators: Law Decoded

Join our free newsletter for daily crypto updates!