The British Columbia Securities Commission reveals how ezBtc’s founder misappropriated millions in customer funds for personal use, leading to significant investor losses.
The Canadian cryptocurrency trading platform ezBtc and its founder, David Smillie, defrauded customers by misappropriating approximately 13 million Canadian dollars ($9.5 million) of their cryptocurrency investments and using the funds for gambling.
A panel set by the British Columbia Securities Commission (BCSC), a provincial regulator in Canada, found that ezBt misappropriated customer funds “for their own purposes.”
The ezBtc platform, which went offline permanently in or around September 2019 and was dissolved in 2022, had claimed to store all its users’ crypto investments in cold storage.
