Canadian Crypto Exchange Exec Allegedly Embezzled $9.5 Million for Gambling

David Smillie, founder of the now-defunct Canadian crypto exchange ezBtc, is facing allegations of embezzling CAD 13 million (USD 9.5 million) from his users, reportedly using the funds for gambling.

A review by the British Columbia Securities Commission (BCSC) found that Smillie siphoned approximately 935 Bitcoins and 159 Ethers from the platform between 2016 and 2019.

The stolen funds were channeled through his accounts to online gambling sites, leaving many customers unable to retrieve their investments.

EzBtc, which ceased operations in 2019 and was dissolved in 2022, had promised to safeguard assets in cold storage. However, Smillie’s actions led to significant losses for users.

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The BCSC plans to impose penalties by September 24, which could include fines or market bans.

In a broader context, cryptocurrency use in Canada remains low, with only 3% of Canadians engaging in crypto transactions.

The majority still prefer traditional payment methods or e-transfers, reflecting a cautious approach towards digital currencies.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.