A Canadian cryptocurrency exchange that was shut down earlier this month for allegedly misappropriating CAD$16 million ($12.1 million) in user funds only has $45,000 in hard assets, reports Global News.<\/p>\n
As previously reported by Hard Fork, the B.C. Securities Commission (BCSC) shut down Einstein Exchange after looking into several complaints from customers unable to access their cash and cryptocurrency assets.<\/p>\n
Grant Thornton Limited was appointed to seize the exchanges assets and return the allegedly missing funds to users. These included cryptocurrency, such as Bitcoin, the BCSC case documents said.<\/p>\n
But, a British Columbia Supreme Court filing published yesterday reportedly says Grant Thorton has discovered that the business only has approximately $15,000 in cryptocurrency and $30,000 in cash.<\/p>\n
The cryptocurrency exchange was incorporated by director Michael Ongun Gokturk in December 2017, during Bitcoins famous bull run.<\/p>\n
In May this year, the BCSC launched an investigation into customer complaints.<\/p>\n
Grant Thornton has reportedly issued notices to several banks across Canada and the US, whereGokturk and the exchange may have held investments or deposits, and seized shares in private companies.<\/p>\n
Gokturk did not respond to Global News request for comment, nor has he replied to the allegations made in the BCSC case filings.<\/p>\n
But, the Einstein Group has reportedly told Grant Thornton that it believes it owes clientsbetween US$8 and $10 million.<\/p>\n
This deficit, the company says, stems from credit card and bank draft frauds. The majority of this loss is made up of cryptocurrency assets, it adds.<\/p>\n
Einstein Exchange is believed to have served 200,000 users from all over the globe.Grant Thornton has so far heard from 200-300 people said to be affected by the exchanges collapse.<\/p>\n
Published November 19, 2019 11:00 UTC <\/p>\n
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