B.C. Crypto Exchange Founder Fined $18.4M for Defrauding Clients

David Smillie misappropriated millions in customer funds for gambling, leaving investors with significant losses and little recourse.

David Smillie, founder of the defunct B.C.-based cryptocurrency platform ezBtc, has been fined $18.4 million by the B.C. Securities Commission for fraud and misappropriation of funds.
Smillie falsely claimed customer assets were stored securely in 'cold storage' while diverting over 935 bitcoin and 159 ether to gambling websites and personal accounts.
The missing cryptocurrency, valued at $13 million in 2019, has since skyrocketed in worth, compounding the financial losses for affected investors.
The ezBtc platform operated from 2016 to 2019 before going offline, leaving users unable to withdraw their funds and sparking widespread allegations of fraud.
Smillie has been permanently banned from B.C.'s investment market, but his ability to pay the imposed fines remains uncertain, offering little hope for restitution to victims.