Notification technology alert symbol with numeric code behind it, conveys a warning of technological security systems that are being exposed to theft of personal information.

Key Takeaways:

The BCSC uncovered a major fraud case involving the Canadian crypto exchange ezBtc and its founder, David Smillie, who allegedly misappropriated $9.5 million from customers.
Smillie diverted nearly one-third of customer assets, including Bitcoin and Ether, to personal accounts and gambling platforms, despite ezBtc’s false claims of secure cold storage.
The exchange ceased operations in 2019 and was dissolved in 2022, with sanctions against Smillie pending determination by September 24.

The British Columbia Securities Commission (BCSC) has exposed a significant fraud case involving the Canadian crypto exchange ezBtc and its founder, David Smillie.

Smillie allegedly misappropriated around $9.5 million from customer accounts, using the funds for personal gambling and other unauthorized activities.

CRYPTO PLATFORM EZBTC ACCUSED OF MISAPPROPRIATING $9.5M, GAMBLING WITH CUSTOMER FUNDS

– Canadian cryptocurrency platform ezBtc and its founder, David Smillie are accused of defrauding customers by diverting approximately $9.5 million (CAD 13 million) in cryptocurrency… https://t.co/CsPI7Sf4n2 pic.twitter.com/7WFaWBBSuz
— BSCN (@BSCNews) August 13, 2024

The BCSC found that ezBtc falsely claimed to store customer funds securely in cold storage, while Smillie diverted nearly one-third of the assets, including Bitcoin and Ether, to his personal accounts and online gambling platforms.

🇨🇦 Canadian crypto platform #ezBtc and its founder David Smillie defrauded customers, misappropriating C$13M ($9.5M) for gambling, per BCSC.

Over 935 $BTC and 159 $ETH were diverted for personal use. pic.twitter.com/irwVV6bcvp
— Satoshi Club (@esatoshiclub) August 13, 2024

The exchange ceased operations in 2019 and was dissolved in 2022. Sanctions against Smillie will be determined by September 24.