Canada’s Einstein Exchange Allegedly Lost $12.1 Million in User Funds, Has Under $50K to Repay Users

According to Global News, a Canadian crypto exchange that got shut down this month for supposedly stealing CAD$16 million, which is $12.1 million, in user funds seems to only have $45,000 worth of hard assets. Einstein Exchange was shut down by the B.C. Securities Commission (BCSC) after customers filed complaints that they can’t access their crypto assets and cash.

Grant Thornton Limited has been appointed to seize the cryptocurrency exchange’s assets and to return users the funds they were missing. These funds were Bitcoin (BTC) cryptocurrency, as the BCSC documents say.

Einstein Exchange Doesn’t Can’t Pay Back Users

A filing from the British Columbia Supreme Court was published yesterday. It says Grant Thornton found out that Einstein Exchange has only about $30,000 in cash and $15,000 in cryptocurrency. Director Michael Ongun Gokturk has incorporated the exchange during the Bitcoin’s bull run from December 2017.

In May 2019, BCSC had started to investigate the exchange’s customer complaints. Grant Thornton has notified the US and Canadian banks where Gokturk and Einstein Exchange have made deposits and investments or had shares in the private sector.

Exchange Says it Owes Clients $10 Million or Less

Gokturk didn’t comment or respond to the allegations in the BCSC case against Einstein Exchange. According to a report, the Einstein Group has informed Grant Thornton that it thinks its clients are owed somewhere between $8 and $10 million.

It also says the deficit is the result of bank draft and credit card frauds, with the loss being almost entirely made up of crypto assets. It’s believed Einstein Exchange has served around 200,000 people from all over the world. However, Grant Thornton has only heard from somewhere in between 200 and 300 users so far. This doesn’t mean more complaints won’t still be filed.

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Author: Oana Ularu

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