The British Columbia Securities Commission (BCSC) has uncovered a significant fraud involving a cryptocurrency trading platform, ezBtc, which defrauded customers of $13 million. Operated by David Smillie, the platform falsely claimed to store customers' digital assets in "cold storage" while diverting funds to personal accounts and gambling websites. This discovery has highlighted the risks associated with fraudulent crypto platforms and the potential financial harm to investors.
The recent case involving the $13 million fraud perpetrated by the crypto trading platform ezBtc, operated by David Smillie, underscores the significant risks associated with investment scams in the cryptocurrency market. This scam, where funds were falsely promised to be held in secure "cold storage" but were instead diverted to gambling sites and personal accounts, highlights the importance of due diligence and vigilance when engaging in cryptocurrency investments. For more information on how to protect yourself from similar schemes, visit our detailed guide on investment scams.
From 2016 to 2019, David Smillie and his company, ezBtc, engaged in fraudulent activities by falsely claiming to store customer bitcoins securely. Instead, he diverted approximately one-third of the assets to gambling sites and personal accounts. After a forensic investigation in 2024, the BCSC revealed the extent of the fraud. The company was dissolved in 2022, and the case was brought to light by the BCSC, which is now determining the appropriate sanctions.
The British Columbia Securities Commission (BCSC) has uncovered a fraudulent scheme involving the cryptocurrency trading platform ezBtc, operated by David Smillie. The platform, which claimed to secure customer bitcoins in "cold storage," instead diverted $13 million in funds to personal accounts and gambling sites between 2016 and 2019. The company was dissolved in 2022, and the BCSC's investigation has revealed the extent of the fraud, leading to potential legal penalties for Smillie. This case highlights the critical need for investor vigilance and regulatory oversight in the cryptocurrency market.
| Entity | Related Search Terms |
|---|---|
| David Smillie | ezBtc, crypto fraud, B.C. Securities Commission |
| ezBtc | crypto trading platform, cold storage scam |
| B.C. Securities Commission | regulatory oversight, crypto investigation |
| Cryptocurrency fraud | investment scam, digital assets, investor protection |
| Cold storage | secure storage, crypto security, asset protection |
