Vancouver based Einstein Exchange was shut down by the B.C. Securities Commission (BCSC) after customers complained about not being able to withdraw their money.
It is said that the exchange only has about $45,000 in “hard assets” remaining, according to a court-appointed receiver.
The Canadian receiver, Grant Thornton Limited, was appointed to seize Einstein’s assets and return the missing funds to clients. Most of the assets which included cryptocurrency, such as Bitcoin, according to BCSC case filings. But in a B.C. Supreme Court filing, the Grant Thorton said “based on a very limited review of Einstein Group’s books and records,” it has discovered the company retains only about $15,000 in cryptocurrency assets and $30,000 in cash.
As the Bitcoin market pushed higher, the company was incorporated in December 2017 by director Michael Ongun Gokturk. Gokturk has not been able to be reached for comment by Global News (Canadian news agency), and he has not responded to the allegations in BCSC case filings. The company had about 200,000 clients around the world and the case is still ongoing,
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