Einstein cryptocurrency exchange closes with a debt of more than $12 million

Andrew Cummings
November 6, 2019

Cryptocurrency trading site Einstein Exchange, based in Vancouver seemingly shut up shop at the end of last month, despite telling the... It has been the first public announcement of an exchange investigation by the regulator. It has absent darkish owing prospects extra than CAD$16 million (USD$12.1 million).

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. The Commission had stated in the application made to the Supreme Court about the numerous complaints that it received from the Einstein clients, for not being able to access their assets from the exchange.

A press birth issued by the BCSC states that accounting company Grant Thornton had been appointed as the receiver of funds to withhold and offer protection to the defunct exchange's resources. According to the statement, Grant Thornton entered and secured Einstein Exchange's assets earlier this month on November 1.

An affidavit posted on Grant Thornton's website says that the BCSC went to Einstein's offices to find the elevator "locked for all floors". At the same time, the exchange owed its customers 16 million Canadian dollars. Consumers were being able to fund their account with both USA or Canadian dollars. Possibilities had been in a location to fund their fable with both USA or Canadian dollars.

The BCSC's investigator, Sammy Wu, also states in the affidavit that after investigating the records at the exchange, he believes that Einstein Exchange was misusing the funds associated with its customers.

Wu states that the investigation resulted in him issuing a letter to Gokturk October 9th demanding disclosure of Einstein's cryptocurrency and cash holdings.

But it will get more relating to.

On Oct 31 the BCSC demanded to see proof of where the exchange was keeping its cryptoassets.

When the BCSC asked the lawyer to provide information on the location of where Einstein's cryptocurrency assets were being stored, the lawyer responded two hours later to inform the regulator they were no longer representing Einstein.

Wu writes that, prior to their resignation or dismissal, Einstein's legal counsel told him that Gokturk had recently been in talks with a U.S. exchange interested in acquiring Einstein.

Given the BCSC's inability to make contact with the Einstein, it's hard to know if customers will ever be refunded.

This is a developing story, updates from Grant Thornton can be followed here.

Other reports by iNewsToday