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.

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.