Aug 2019 - EZ-BTC/Dave Smillie - $3.9m+ (Canada)
"While it is unclear how many claimants there are, or how much is being claimed in total, ezBtc faces at least six lawsuits in British Columbia alone. Among them are two from former business associates claiming millions." “In one case, the company paid Gary Wylon Wong most of the more than $170,000 he attempted to withdraw in three installments between February and June 2018. Wong sued ezBtc to recover roughly $20,000 that he claims remains outstanding. In another case, John Patric Arthur Roberts claims that ezBtc has not paid any of the $5,392.50 he attempted to withdraw from his account in August 2018.” “Richard Godwin, of Whistler, claims he lent the company and Smillie more than 173 Bitcoin -- an amount currently worth more than $2 million -- in October 2016 and has not been repaid. Godwin's lawsuit alleges that, with interest, he is now owed more than 284 Bitcoin -- the equivalent of $3.8 million.”
Further Analysis
Dave Smillie launched and largely single-handedly ran EZ-BTC, one of four firms entrusted with determining bitcoin price in Canada. No one had any visibility into the operation and even today, exact figures are not known about what is actually owed to customers of the exchange. Dave Smillie owes a sum of over $3.8m to his former business partner Rick Godwin, and there are five other lawsuits also pending in the courts which can give some idea. However, it is very likely that many further sums are owed to individuals who haven’t bothered filing any claim. It would appear that all funds were stored with Dave Smillie personally (and thus improper cold storage), limited records were kept, and obviously nothing was insured in any way. It also appears that Dave Smillie tried very hard to get the money back on behalf of customers - by complaining to the gambling site where he gambled away their hard-earned money.
More Cryptocurrency Exchange Hacks/Scams/Frauds
Trezor Wallet Phishing Website Nosler165 > > < < Ledger Olusegun Alabi Theft
Sources/Further Reading
I Got Scammed by the Cryptocurrency Exchange EZBTC.CA : PersonalFinanceCanada (Feb 6)
Another Vancouver-Spawned Bitcoin Firm Accused of Owing Millions | The Tyee (Feb 6)
EzBTC.ca – ezBTC Review of Canadian Crypto Exchange – Pyramid Reviews (Feb 8)
Users of a cryptocurrency exchange under BCSC investigation doubt they'll get their money back | CTV News (Feb 8)
B.C. cryptocurrency exchange faces 6 lawsuits, 'dozens' of unpaid users | CTV News (Feb 9)
ezBTC Review - Ongoing Lawsuit, Opaque Practices Give Cause for Concern : BitcoinCA (Feb 21)
Fortune Jack here regarding David Smillie and ezbtc : BitcoinCA (Feb 22)
ezBtc - my experience thus far (still paying, 2019) : BitcoinCA (Feb 22)
Report: Third Vancouver Crypto Exchange Investigated by BC Securities Regulators (Feb 22)
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