BC Securities Regulator accuses no longer existing crypto platform, to have committed fraud in the amount of several million dollars
BC Securities Regulator accuses no longer existing crypto platform, to have committed fraud in the amount of several million dollars
The British Columbia Securities Commission has accused EzBTC of having committed a securities fraud system of several million dollars.
The Commission claimed that Smillie and his crypto company had lied to customers through the platform and redirected their assets on online gambling sites.
EZBTC allegedly redirected $ 13 million of customer assets
According to a Bloomberg report, the allegations were presented in a hearing announcement published last month. The BC Securities Commission accused Smillie and EZBTC, user assets worth $ 13 million, including Bitcoin (BTC) and Ether (Eth), without having postponed virtual gambling sites without the approval of the owners.
While EZBTC stopped operating in October 2022, the users moved 2,300 BTC and 600 ETH tokens into the wallet of the platform between 2016 and 2019. The company founder allegedly told investors that their assets were often kept offline in cold stores. However, the company never had enough wealth to cover the money of the users.
In addition, EZBTC was never registered with the BC Commission, and the agency claims that the company's agreements with users fell under futures contracts that fall within their area of responsibility.
The founder of EZBTC must pay fines
According to further investigations, the BC Commission found that EZBTC and Smillie had faced numerous lawsuits several years ago. Police Gary O’Brien from Royal Canadian Mounted Police (RCMP), which had previously made the complaints facilitated, said that the police investigations against EZBTC had not provided enough evidence in 2019 to file a criminal complaint."All I can say is that the matter was examined and the main investigator had not collected enough evidence to pursue criminal matters, so they decided that it would probably be best to proceed from a civilian point of view. This is the only information that I can provide at this point," said the CONTABLE.
On the other hand, Doug Muir, Director of Enforcement of the Securities Commission, announced that there was a lengthy examination of the EZBTC, hence the hearing notification.
In this case, as in all of our cases, we need time for the investigation, so we have to be able to collect evidence that we are satisfied. So collecting it takes time. Our studies are often time -consuming and complex, and this is an example of this, "said Muir.The supervisory authority also announced that the case was not a criminal law but an administrative case, and added that the parties involved may be at risk or bans from public markets instead of being bonmed.
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