Canadian crypto platform Einstein Exchange was Ponzi scheme, says local regulator
The British Columbia Securities Commission (BCSC) says the now-defunct crypto exchange Einstein Exchange operated as a Ponzi scheme after becoming insolvent in 2018. The BCSC has disclosed its allegations against Michael Ongun Gokturk, the sole director of three now-defunct crypto companies Einstein Exchange Inc., Einstein Capital Ltd., and Einstein Law Corporation. In the document, the Canadian securities regulator says that after becoming insolvent in January 2018, Gokturk operated Einstein Exchange as a Ponzi scheme “by continuing to accept deposits and paying out some customers with money and crypto assets drawn from the pooled bank accounts and wallets.” Despite claims that Einstein Exchange served as a counterparty to customer trades, the BCSC contends that the firm failed to secure corresponding crypto assets to fulfill these transactions. You might also like: Canada: Einstein Cryptocurrency Exchange Loses Customers’ Funds Moreover, the exchange al...