The British Columbia Securities Commission (BCSC) is the independent provincial government agency responsible for regulating capital markets in British Columbia has taken control of a cryptocurrency exchange which allegedly owes customers over $12 million.
Einstein offers trading of 19 cryptocurrencies against the USD and accepts customer deposits in CAD, USD, and cryptocurrencies. The Exchange was established in December 2017 by British Columbia resident Michael Ongun Gokturk, the sole director of the exchange.
The British Columbia Securities Commission (BCSC) took control of the Vancouver-based cryptocurrency exchange on Monday as the regulatory body announced that the Supreme Court of British Columbia has granted its application for “an order appointing an interim receiver to preserve and protect any assets of Einstein Exchange.”
According to CBC News, Einstein Exchange is facing a pair of civil suits filed last month, which Gokturk has yet to file responses to. The first suit was filed by Hong Kong-based Sino Allied alleging that Einstein Exchange repeatedly failed to pay the $1 million owed for the purchase of tether.
The BCSC staff has determined that Einstein Exchange owes customers more than $16,322,705 Canadian dollars (~$12,398,726), including more than $11 million CAD in cryptocurrencies and about $5 million CAD in cash. While Einstein Exchange claimed it had “sufficient crypto assets to satisfy withdrawal requests from customers,” the regulator pointed out that the exchange’s lawyers refused to specify the location of those assets.