A Canadian crypto exchange founder is in hot water after being accused of using customer funds for online gambling. David Smillie, the founder of ezBtc, allegedly gambled away over $9.5 million in customer money on betting sites like FortuneJack and CloudBet.
Millions Disappear into Betting Accounts
The British Columbia Securities Commission (BCSC) found strong evidence that Smillie funneled money from the exchange to his personal betting accounts. The regulator noticed a clear pattern: as more Bitcoin flowed into ezBtc, more Bitcoin were sent from Smillie’s accounts to the gambling sites.
The BCSC also discovered that the majority of transfers from ezBtc to CloudBet went to accounts belonging to Smillie or an ezBtc employee. This strongly suggests that Smillie was using customer funds for his own personal gambling.
Smillie’s Whereabouts Unknown
Smillie did not attend the hearing and his current location is unknown. The BCSC has charged him with fraud for misleading customers about the safety of their funds.
This case highlights the importance of choosing reputable crypto exchanges and doing your own research before investing.
