Copy link
Increase text size
Decrease text size
Link copied

CA$16M client funds of Einstein Exchange reduced to CA$45,000 in ‘hard assets,’ interim receiver reported

Einstein Exchange owes its clients CA$16 million but that figure has reportedly vanished as reported by the interim receiver investigating the company.

Image via Einstein Exchange Facebook Page

Wed, 20 Nov 2019, 05:39 am UTC

Two weeks ago, the Einstein Exchange was seized by the British Columbia Securities Commission (BCSC) after receiving complaints from clients that they couldn’t access their assets. The BCSC has tasked auditing firm Grant Thornton as the interim receiver, giving it authority to seize the assets of the exchange for proper documentation.

Now, the auditing firm reports that of the CA$16 million that the exchange owes its clients, only CA$45,000 is left in “hard assets.”

Thornton reports that on the cryptocurrency side, only CA$15,000 remain, while the assets tied in cash is at CA$30,000. The receiver has now sent notices to banks in Canada and the United States where Einstein Group and sole director Michael Ongun Gokturk may have deposited their investment, Global News reported.

Investigators try to find more evidence

Gokturk himself could not be reached for comment and investigators said they’ve been unable to contact him on the numbers provided on the company’s site. BCSC investigator Sammy Wu said in an affidavit that he believes that the exchange has improperly managed its customer’s assets, CBC reported.

Earlier this month, Wu went to Einstein’s building but found that all elevators are locked on the premises. Following the BCSC’s order, authorities tried to seize company records but were subsequently delayed for ten days as Gokturk and Einstein Group “retained legal counsel.”

More information expected to come out

It wasn’t until Nov. 11 that investigators acquired “substantial access to the Einstein Group’s digital books and records.” Thornton’s aforementioned report of the significant reduction in the estimated funds owed by Einstein to clients is based on documents obtained by Wu and his team. It’s also important to note that the review of these records has been limited, so it’s expected that more information will come to light in the following weeks as investigators try to sift through all the company’s data.

Gokturk is also facing two more civil lawsuits filed by Hong Kong-based Sino Allied and Vancouver technology entrepreneur Scott Nelson. The former claims that Gokturk owes it CA$1 million in unpaid Tether transfer, while the latter claims the Einstein's head needs to pay him CA$535,000 on an unpaid Bitcoin transaction.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • maggie1122
  • 2020.02.05 06:28:03
This exit scam executed by Einstein Exchange has left me and approximately 200,000+ customers with a monetary loss amounting to millions of dollar and cryptocurrencies combined. This news hurt me initially as I was among the victims of this scam but thanks to a Recovery Pro my money has now been recovered. You reach me if you have also lost money to these binary options and cryptocurrency scams and I will help; maggiealder12 {at} gmail, com
  • 0
  • ·
  • 0
  • Bitcoin (BTC) $9,179.35 (-2.21%)
  • Ethereum (ETH) $238.55 (-3.01%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $236.78 (-2.48%)
  • Bitcoin SV (BSV) $180.34 (-4.20%)
  • Bitcoin (BTC) $9,179.35 (-2.21%)
Feb 21, 2020 (Friday)
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
Brazil to launch new payment system in response to cryptocurrencies
Digital currency exchange Coinbase Pro lists Kyber Network token
Norwegian Air to soon start accepting crypto payments
Swedish central bank begins CBDC pilot with Accenture
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
Telecom companies complete cross-carrier mobile payments using blockchain
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
South Korean ICO project discontinued, to return $7.5M to token holders
Samsung maintains crypto support in soon-to-launch Galaxy S20
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
Coinbase becomes first crypto company to receive Visa principal membership
Dubai Economy and six banks launch KYC Blockchain Consortium
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.