The British Columbia Securities Commission (BC) blamed a cryptocurrency exchange and its founder for being indulged in a multi-million dollar securities fraud scheme. For those who are not aware, the BC Commission is a regulatory body that controls and manages securities legislation in British Columbia (a Canadian province).
According to reports, the BC Commission accused “ezBtc” a collapsed Nanaimo-based cryptocurrency platform of perpetrating a multimillion-dollar securities fraud scheme. Additionally, its founder David Simile also facing charges for alleged fraud related to securities. The Commission alleged that Simile and his company didn’t tell the truth about the cryptocurrency platform to his clients and transferred their assets toward online gambling.
Reportedly, the accusations against “ezBtc” came into highlight when last month a hearing has been held. The BC Commission accused David Simile and ezBtc that they had knowingly moved worth $13 million assets. It includes various types of cryptocurrencies like Bitcoins (BTC) and Ether (ETH). In October 2022, the ezBtc stopped its operations and users moved their assets of 2300 BTC and 600 ETH to the platforms waller between 2016-2019. Additionally, the report unveils that the founder of ezBtc, David Simile allegedly told their investors that their assets are stored in offline cold storage and firms have no funds to recover users’ investments.
According to reports, etc charged with financial crimes and the list of complaints has also more to their name. Also, recent reports claimed that the company was operating illegally without taking approval from the regulators. There were many pending cases against David Simile but because of lack of evidence, he always remained out of any action. “All I can say is that the matter was investigated, and there was insufficient evidence gathered by the primary investigator to pursue criminal matters, so they decided it would probably be best to go from a civil angle,” says Constable Gary O’Brien of Royal Canadian mounted police (RCMP).
Canada has always remained a supporter of crypto-related services and supports them in their operations. While on the other it’s following a cautious approach to protect its customers from any unforeseen potential mishaps. Also, the collapse of one of the largest cryptocurrency exchanges, FTX, has further alarmed authorities worldwide to look at the safeguard measures available in the country. It will be interesting to see how the country will balance itself from taking a cautious approach to facilitating crypto businesses in the country.