Canadian securities regulators have taken control of the Einstein Cryptocurrency Exchange.
The British Columbia Securities Commission (BCSC) announced Monday it took control of Einstein Exchange after the platform announced Oct. 31 its intention to shut down its operations in the next 60 to 90 days. Einstein owes its clients $ 12.4 million ($ 16.3 million Canadian), according to a court record.
The Supreme Court of British Columbia granted the BCSC order and assigned the accounting firm Grant Thornton to take control of the assets of the Vancouver Stock Exchange, even allowing Grant Thornton to take possession of the assets of the Vancouver Stock Exchange. property and assets of Einstein. A court order authorized Grant Thornton to forcibly enter one of Einstein's premises, if necessary.
The company entered and secured the premises of Einstein Exchange on November 1st.
According to the BCSC, the commission has received a number of complaints from customers unable to access their assets on Einstein Exchange. A lawyer representing the platform informed clients that it would close in the coming months because the exchange had not been profitable on October 31, according to the BCSC release.
This is the second time in the past year that a Canadian cryptographic exchange has been folded. QuadrigaCX collapsed earlier this year after founder and CEO Gerald Cotten died of a Crohn's complication. He had exclusive control of the exchange at the time of his death.
In the Quadriga case, the auditor of the Big Four EY, EY, is currently the trustee in bankruptcy of the evicted clients of the stock exchange. To date, the company has recovered approximately $ 35 million from third-party payment processors and estate assets of Cotten. EY seeks to recover nearly $ 200 million for potentially up to 115,000 customers.
Einstein CEO Michael Gokturk did not immediately return a request for comment. The Einstein website was not accessible from 21:00 UTC.
Michael Gokturk image by Marc Hochstein for CoinDesk