Canadian Authorities Shut Down A Vancouver-Based Exchange

In the latest Bitcoin and altcoin news in Canada, we can see that there has been one local exchange which was shut down recently by the Canadian authorities for owing $16 million in outstanding obligations. We are talking about Einstein exchange, a Vancouver-based crypto trading platform which owes money to borrowers and is not functional anymore.

On Monday, the British Columbia Securities Commission (BCSC) provided a statement where it noted “the action to protect customers” of the exchange and sought a Supreme Court order with an interim receiver to seize the exchange.

The accounting firm named Grant Thornton Ltd. (which is the same firm in charge of the Quadriga exchange proceedings) was subsequently appointed. After being given the green light by the Supreme Court, the Canadian authorities from this firm stormed and secured the offices of the Einstein exchange, officially shutting it down.

The application for the court order shows that BCSC highlighted several complaints from customers unable to access their assets. The exchange told the commission that it would be forced to close within 2 months, citing profit shortfalls. Originally alerted to the Einstein exchange back in May for possible money laundering, the commission has been monitoring the proceedings in their offices but has not elaborated much on these concerns.
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However, what we know is that the BCSC alluded to Einstein exchange, using their customer assets “improperly” as some claims show. According to the investigator of the commission Sammy Wu, Einstein owes its customers more than $12.4 million (which is around $16.3 million in CAD) with cryptocurrencies amounting around $8.3 million (CAD $11 million) as we can see in the cryptonews.

Unfortunately, Einstein is not the only exchange to shut its doors over the past year or so. On November 3 2019, the Nasdaq-powered cryptocurrency platform DX.Exchange closed its doors. An official blog post showed that the exchange had become unsustainable, forcing the firm to either merge or sell.

After the announcement went live, trading was halted and all deposits were suspended. In order for a merger or a sale to commence, all client funds need to be returned. As we can see from the blog post, each customer was required to send a list of ID checks to an exchange support email, providing a deadline of November 15.