Crypto Exchange Founder Charged with Gambling Away $13 Million in Customer Funds
In Canada, a securities regulator has accused the founder of a cryptocurrency exchange of misusing customer funds for online gambling.
The British Columbia Securities Commission (BCSC) has charged David Smillie, the founder of ezBtc, with diverting CAD $13 million (approximately $9.48 million) in customer assets to gamble online.
The BCSC’s investigation revealed evidence suggesting Smillie used these funds to place bets on sites like FortuneJack and CloudBet.
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The commission found a clear pattern of funds being transferred from ezBtc to these gambling platforms.
According to the regulator, Smillie’s gambling accounts were either personally owned or linked to an insider at ezBtc.
Notably, over 21% of Bitcoin transfers from ezBtc to CloudBet were connected to accounts that also received Bitcoin from Smillie’s other exchange accounts.
Smillie did not attend the hearing, and his current location is unknown.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
