Canadian Crypto Exchange Einstein Closes Its Doors, Owes Over $12M to Clients

Canadian digital currency exchange Einstein has shut down operations, allegedly owing clients over 16 million Canadian dollars (around US$12.4 million). 

The British Columbia Securities Commission (BCSC) revealed on November 4 that it had recently been told by a legal counsel speaking for Einstein that the exchange intended to close down within 30 to 60 days because of lack of profit. Einstein’s website is now down.

In a different affidavit filing dated November 1, BCSC lead agent Sammy Wu said that he trusts “Einstein improperly used their customers’ assets” and that it owes clients millions in fiat and cryptocurrencies.

Wu added that he went to the Einstein Exchange office on November 1 and “discovered that the elevator is locked for all floors.”

“I called Gokturk’s [Einstein Exchange founder Michael Ongun Gokturk] phone number listed on their website and the recording said all their agents are not available. I called Gokturk and his voice mail said that he is unavailable and to send a text message since he does not check voice mail. I sent him a text message,” Wu further said.

The BCSC was looking on the case and said that the Supreme Court of British Columbia had selected Grant Thornton as an interim receiver to take ownership of any of Einstein’s properties and resources.

“The BCSC has not authorized any crypto-asset trading platforms to operate as an exchange,” it stated, including that Canadians should exercise caution when purchasing or selling any digital currencies because of different risks.