Pi Network - auto mobile mining: Join now and be one of the pioneers!!

Blog

The Canadian Einstein exchange, which was put into receivership a few weeks ago, is now closed completely. What is more, there is no evidence of the funds held on the exchange, reportedly around CAD $16 million.


Einstein Exchange Operated with Deficit

The Canadian market operator is the second significant crash in the country, following the closing of the notorious QuadrigaCX at the beginning of 2019. This time, the loss may be smaller, but the exchange followed a similar scenario of withholding user funds.

The Einstein exchange was ordered to cease operations on November 1, and was taken into custody by the British Columbia Securities Commission. The Grant Thornton legal firm was appointed as interim receiver, tasked with tracking the funds of the exchange.

On November 18, Grant Thornton ended its interim receivership, discovering that the exchange did not hold funds in any known banks. There were additional crypto losses which could not be tracked.

Michael Gokturk, CEO of the now-defunct Einstein exchange, testified that the market held between CAD 8 and 10 million, not the 16 million previously reported. Most of the funds were in crypto assets. However, there was no disclosure of wallets or addresses, and allegedly Gokturk kept the funds not only in controlled wallets, but on other exchanges.

No Sign of Crypto Funds Kept in Custodial Wallets

The only source of knowledge about the Einstein exchange’s funds is a sworn affidavit by British Columbia citizen Sammy Wu, who claims to have knowledge of the exchange’s affairs. He claimed that the market operator pooled together both fiat and crypto funds, and used that pool to serve withdrawals. The Einstein exchange had markets opened for 19 coins and tokens, and accepted fiat deposits in USD and CAD.

The scenario recalls the claims that some of the funds on QuadrigaCX were held on Kraken, with suggestions that the assets were not held in custody, but also day-traded in risky bets.

Currently, the company that ran the Einstein exchange is held under complete custody by the BCSC. It is uncertain if the funds were lost, or intentionally diverted for personal gains. In any case, the Einstein exchange was relatively small, and for months gave worrying signs its operations may end with an exit scam.

Previous user reports included lack of support, and aggressive replies when seeking redress or funds. The Einstein exchange reportedly only allowed withdrawals if new customers made deposits, running a deficit both in fiat and cryptocurrency.

What do you think about Einstein’s closing? Share your thoughts in the comments section below!


Images via Shutterstock

No Comments

Be the first to start a conversation

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Categories

Pi Network - auto mobile mining

Become one of the pioneers!!

Random Posts

DOWNLOAD MY EBOOK FOR FREE

"Your Headline Here How I Made $4947 In 1 Month"

Lorem pretium lorem orci elit nunc imperdiet nec vel sit pretium hendrerit amet nec orci gravida gravida sapien purus massa

Quick Bio About Me

mypicmeLorem proin accumsan accumsan volutpat ut nullam odio eleifend libero quisque ipsum gravida eleifend dolor nunc sagittis venenatis orci eleifend lorem quisque venenatis non sagittis sagittis ipsum nunc.

lacus eleifend pretium eros sed consectetur venenatis praesent sapien consectetur dolor nullam laoreet orci mauris ornare congue lacinia auctor lorem quis quis lacus eleifend pretium eros sed consectetur venenatis praesent sapien consectetur dolor nullam laoreet orci mauris

Resources

  • Resource 1

    Lorem sed praesent quisque auctor libero eros lorem nec praesent accumsan ornare venenatis nullam.

  • Resource 2

    Lorem sed praesent quisque auctor libero eros lorem nec praesent accumsan ornare venenatis nullam.

Random Blog Posts

© 2020 Cryptoracle.info - Crypto News