🚨 $9.5M Bitcoin & Ether Gambled Away By Canadian Crypto Exchange 🎰
In a shocking revelation, the British Columbia Securities Commission (BCSC) has uncovered a massive fraud involving the Canadian crypto exchange ezBtc. The platform's founder, David Smillie, misappropriated approximately $9.5 million CAD of customer funds, funneling the stolen Bitcoin and Ether into gambling and personal use.
Operating between 2016 and 2019, ezBtc claimed to keep users' crypto safe in cold storage. However, the truth was far darker. Over 2,300 Bitcoin and 600 Ether were amassed, but nearly one-third of those assets vanished into Smillie’s personal exchange accounts and online gambling sites like CloudBet and FortuneJack. The BCSC panel slammed Smillie for his deceitful actions, noting that his scheme caused real financial losses, with customers unable to withdraw their funds. As ezBtc collapsed in September 2019, the damage was already done, leaving investors high and dry.
Sanctions are expected to be imposed by September 24, and Smillie could face severe penalties, from monetary fines to lifetime bans on market participation. Despite the gravity of the situation, Smillie and his representatives were notably absent from the hearings, though legal representation was present.
While this scandal unfolds, it's clear that crypto adoption in Canada is hitting a wall. With only 3% of the population using Bitcoin or other digital currencies for daily transactions, the country's residents seem more comfortable sticking with cash and cards. Even as the world moves towards digital payments, Canadians remain cautious, favoring traditional e-transfers over cryptocurrencies. This reluctance to embrace crypto highlights the uphill battle digital currencies face in gaining mainstream acceptance in Canada.
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