Customers complained they could not access their funds; approximately $16M owed

On November 4, 2019, the British Columbia Securities Commission announced that it had made an application to the Supreme Court of the province for the appointment of an interim receiver to take custody of the assets, undertaking and business of a group of companies operating a cryptocurrency exchange, called the Einstein Exchange. The receiver entered and secured the premises on November 1, 2019.

According to the affidavit of the Lead Investigator with the Enforcement Division of the BCSC, the Securities Commission commenced its investigation in May 2019 after hearing complaints from several of the company’s customers indicating they were not able to access their assets on the exchange. Two other individuals, including a shareholder, also complained about possible money laundering. According to documents filed with the court, the company trades nineteen different cryptocurrencies and its customers are currently owed just over $16 million.