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

Just Posted

Snowfall warning continues for parts of B.C.’s Interior

First significant snowfall of the season prompts Environment Canada warning

Hagensborg Water District ratepayers vote to dissolve district

In a close vote of 68 to 63, ratepayers have chosen to dissolve the water district

Bella Coola residents rely on food bank support

Your volunteers at the food bank work year-round, but are especially busy at Christmas

Nations coming together: Haida pole raised at opening of Heiltsuk Big House

‘Haida/Heiltsuk Peace Pole’ part of ceremony marking return of spiritual centre in Bella Bella

Nimpkish back in service while NSW undergoes repairs

The Northern Sea Wolf sustained damage to its propellers from a log strike in November

VIDEO: Boys help rescue Cariboo bear cub

The cub, weighing just 24lbs, has been taken to wildlife sanctuary in Northwest B.C. for the winter

Kelowna man attempts to steal bait bike from RCMP parking lot

38-year-old Brian Richard Harbison is facing several charges

‘Things haven’t changed enough:’ Ecole Polytechnique anniversary prompts reflection

Fourteen women were fatally shot by a gunman at the Montreal school on Dec. 6, 1989

Bear raids freezer, gorges on Island family’s Christmas baking

Hungry bruin virtually ignored meat and fish, focused, instead, on the sweets

B.C. pharmaceutical company’s stocks double in value after successful lupus drug trial

More than 40 per cent of patients using voclosporin saw improvements in kidney function

Second warning on romaine lettuce from California region as another E. coli case reported

Two cases of E. coli have been reported in relation to the illness in the U.S.

Residents in B.C. city could face 133% tax hike in ‘worst case’ lawsuit outcome: report

An average home could see a tax increase of $2,164 in one year

B.C. Transit finds 28 used fareboxes online, saves $300,000

‘Someone joked maybe we can buy used fareboxes on eBay,’ CEO says

Many of Canada’s working poor can’t afford lawyers, don’t qualify for legal aid

One lawyer says many people earn too much to qualify for legal aid, but not enough to really live on

Most Read