B.C. cryptocurrency sell shuts doors overdue some-more than $16M to customers

November 05, 2019
Technology

Under a cloud of complaints, investigations and lawsuits, a argumentative Vancouver cryptocurrency sell has close a doors with some-more than $16 million overdue to customers.

The B.C. Securities Commission (BCSC) performed an sequence final weekÂ appointing an halt receiver to manage a Einstein Exchange, after filing a petition in B.C. Supreme Court claiming sell founderÂ Michael Ongun Gokturk could not be reached.

BCSC executive executive Peter Brady told CBC News a elect has also told a RCMP of concerns about probable income launderingÂ raised by a former sell employee.

“We perceived a series of complaints from business of a sell being incompetent to entrance their assets. We had sent some requests for information to a sell twice and we didn’t get an answer,” pronounced Brady.

“We were afterwards articulate to a company’s warn and schooled that a sell dictated to close down within 30 to 60 days due to a miss of distinction and subsequently that authorised warn stepped down, so that lifted concerns for us.”

Einstein Exchange claimed in justice papers it had “sufficient crypto assetsÂ to prove withdrawal requests from customers.”

But a BCSC claimed a exchange’s lawyersÂ refused to mention a plcae of those assets.

The Einstein Exchange has close a doors amid countless complaints and concerns lifted to a elect about income laundering. (Yvette Brend/CBC)

In an affidavit, BCSC questioner Sammy Wu pronounced he believes “Einstein improperly used their customers’ assets.”

Wu pronounced elect staff dynamic that a association owesÂ customers some-more than $16.3 million â€” includingÂ more than $11 million in cryptocurrencies and about $5 million in cash.

Wu pronounced he went to a Einstein Exchange bureau final Friday and “discovered that a conveyor is sealed for all floors.”

“I called Gokturk’s phone series listed on their website and a recording pronounced all their agents are not available,” Wu’s confirmation said.

“I called Gokturk and his voice mail pronounced that he is taken and to send a content summary given he does not check voice mail.”

Gokturk spoke to a CBCÂ in Jan 2018 about a charge of online critique that accompanied a opening of a exchange. Customers claimed that staff were delayed to respond and voiced fearÂ they competence remove their money.

At a time, GokturkÂ claimed his group was impressed by response and direct for digital banking and betrothed that “no one will remove their income here.”

The company’s website has been taken down though a Einstein Exchange Facebook page is still online. The page facilities many posts from business perfectionist their income and warning others about problems.

On Facebook a association warned a business about posting their information online since “we have been receiving many complaints that scammers have been targeting Einstein business who have posted their criticism emails publicly.”

In further to mixed patron complaints, a Einstein Exchange is also confronting a span of polite suits filed final month in propinquity to a send of cryptocurrency.

Hong Kong-based Sino Allied filed a notice of polite explain claiming it was still due $1 million US after Einstein concluded to buy a form of banking named Tether.

And dual weeks ago, Vancouver record businessman Scott Nelson sued Gokturk after claiming he had eliminated 50 BitcoinÂ â€” homogeneous to $535,000Â â€” though receiving any income in return.

Nelson claimed Gokturk told him he would handle a money, though “repeatedly blamed technical issues for a failure.” Nelson pronounced Gokturk afterwards told him he would give him a bank draft, though nothing was ever delivered.

Gokturk has not filed responses to possibly of those lawsuits.

A default visualisation was also released final AprilÂ against Gokturk and Einstein Exchange in propinquity to $116,789.62 due on an American Express credit card.

The CBC was incompetent to strech Gokturk for comment.

Brady pronounced a BCSC has warned investors to practice counsel when traffic with platforms that understanding in cryptoassets since they tend to be aloft risk.