A cryptocurrency business in Vancouver which has been facing trouble has been shut down amid allegations in November as $16 is owed to its clients and as remaining hard assets have only $45,000, according to a receiver who has been appointed by the court.
The Einstein Exchange in Vancouver has been shut down by the B.C. Securities Commission (BCSC) after numerous complaints has been investigated that came from the clients as they were unable to have access to their cash as well as the cryptocurrency assets from those companies which offer services in crypto-trading.
A receiver was appointed in Grant Thornton Limited so that the assets of Einstein are seized and the missing funds are allegedly returned to the clients. Cryptocurrency is included in almost all the assets, such as it has got Bitcoin, according to the case fillings of BCSC.
But in a Supreme Court filling of Nov. 18 B.C., it has been said by the receiver that it is based on the review of the very limited books and records of Einstein Group, it has been found out that cryptocurrecy assets of about $15,000 and cash of $30,000 has been retained by the company.
As there was a boom in the Bitcoin market, the company has been incorporated by Director Michael Ongun Gokturk in December 2017. An investigation was launched by the BCSC in May 2019 in customer complaints , and according to fillings, it has alleged Einstein that customer assets has been improperly used by it.
According to claim made by a person, the company owes unpaid Bitcoins to the degree of $ 535,000 to him, and it has been claimed by another unidentified creditor that the company owes several million dollars to him according to the fillings that came from Grant Thornton Limited.
So far, notices has been issued by the receiver to numerous banks in the U.S. and Canada which includes the Cannacord Genuity that happens to be in Vancouver according to the fillings where there might be investments and deposits by Einstein Group and Gokturk.
The shares have also been seized by the receiver in many private companies and they have started investigation where other companies and Gokturk in their various accounts have beneficial interests.
Global News could not reach Gokturk for any comment and no response came from him regarding the case fillings in BCSC about the allegations.
However, according to the fillings it has been informed to the receiver by the Einstein Group that it is believed by them that the customer owes an amount between the range of $8 million to $10 million.
According to claims made by the company, the deficit is a result of the credit card which is in a series and frauds of bank draft that has been suffered by the Einstein Group, and the major part of the loss is courtesy the results of the assets in cryptocurrency.
There are about 200,000 clients of the company around the world and inquiries are so far received from the receiver that has come from something between two hundred to three hundred customers.
Company records are secured by the receiver who moved immediately on November 1 and according to filings for approximately 10 day it has been stalled while the legal counsel was retained by Mr. Gokturk and the Einstein Group.
Substantial access was gained by the receiver but not before November 11 about the records and digital books of Einstein Group.