Regulator takes action against two B.C. cryptocurrency platforms

At issue are the Nanaimo-based ezBtc.ca and the Vancouver-based Einstein Exchange

Bitcoin buttons are displayed on a table at the Inside Bitcoins conference in Berlin on Feb. 12, 2014. THE CANADIAN PRESS/AP, Frank Jordans

The B.C. Securities Commission is investigating complaints against cryptocurrency exchange ezBtc and taking court action to protect customers of crypto-asset trading platform Einstein Exchange — as the websites for both exchanges have stopped loading.

A spokeswoman for the regulator says in an e-mail that it has received several complaints about Nanaimo-based ezBtc.ca, and is commenting publicly because “customer assets are at risk.”

Separately, the commission said Monday that it has received numerous complaints about customers being unable to access their assets on the Vancouver-based Einstein Exchange. A lawyer representing the platform told the commission on Oct. 31 that it planned to shut down within 30 to 60 days “due to a lack of profit.”

The provincial regulator added that on Nov. 1 it applied to the Supreme Court for an order to appoint an interim receiver to protect any assets of Einstein Exchange. The court granted the application and appointed Grant Thornton LLP as interim receiver.

The news comes after the demise of Vancouver-based exchange QuadrigaCX, which sought creditor protection after its founder and chief executive died suddenly late last year leaving its employees unable to locate millions of dollars worth of cryptocurrency.

READ MORE: Widow of QuadrigaCX founder to hand over most assets in settlement

The commission says that to date, no crypto-asset trading platforms have been authorized to operate by the provincial regulator, and do not have the same investor protections as authorized companies.

READ MORE: Cryptocurrency exchange CEO who suddenly died leaves Kelowna house in will

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

BUSINESS BUZZ: COVID and cash, ATCO’s Weatherford heads Selkirk board, and more

Darren Davidson brings us the latest goings-on in the local business world

Two new fires burning in the Arrow Lakes Region

One of the fires is burning approximately 30 kilometres northwest of Castlegar

LETTER: ‘Raw racism?’

From reader Paul Van Caeseele

Municipal climate caucus, founded in Nelson, meets for national online conference

The group consists of 294 mayors, councillors and regional directors from across the country

Navy vessel to be named after Nelson’s Hampton Gray

The announcement comes on the 75th anniversary of Gray’s death

STANDING TALL: Forestry workers meet the challenges, remain hopeful

A look at the forest sector in B.C. – and those hoping for the best – amid mill curtailments

Parkinson SuperWalk goes virtual throughout B.C. due to COVID-19

People encouraged to walk around their neighbourhood, along community trails, through parks, forests

Missed rent payments ‘cause of COVID-19? You have until July 2021 to pay up

Each monthly instalment must be paid on the same date the rent is due.

U.S.-Canada pandemic border restrictions extended into September

‘We will continue to keep our communities safe,’ says Public Safety Minister Bill Blair

578 British Columbians currently infected with COVID-19

Seventy-eight new cases confirmed in past 24 hours

WE Charity registers as lobbyist, lays off staff, looking to sell real estate

WE Charity said its financial position has been greatly affected by the COVID-19 pandemic

Conservation seizes fawn illegally kept captive in Vancouver Island home

A Comox Valley resident charged and fined under the Wildlife Act

Pandemic could be driving more parents to get on board with flu shot: study

University of B.C. study gauges willingness for parents to vaccinate children for influenza

Watchdog clears Okanagan RCMP in death of man after arrest over alleged stolen pizzas

The man died in hospital after having difficulty breathing and broken ribs

Most Read