Summary of Cryptocurrency Fraudulent Activity:
- The B.C. Securities Commission found that ezBtc defrauded its customers by diverting $9.4 million to gambling and personal use.
- EzBtc misled customers by diverting approximately C$13 million of their assets to gambling sites or personal accounts.
- Customers were unable to recover all of their assets, resulting in actual financial loss.
BCSC Investigation Reveals Asset Diversion:
The BC Securities Commission enlisted a forensic data analytics firm to uncover the location of the purportedly stored Bitcoin and Ethereum by ezBtc.
Implications of Unauthorized Transfers:
The panel’s findings indicate that Smillie, the founder of ezBtc, directed operations and likely orchestrated unauthorized transfers of customer assets to gambling sites or personal accounts.
Potential Sanctions and Future Market Participation:
The BCSC panel is considering potential sanctions for ezBtc, which may include monetary penalties and prohibitions from participating in future markets.
