May 2, 2023 2 min read


Crypto Platform Diverted $9.6M to Gambling Sites in BC

The charges have been levied against ezBtc by the British Columbia Securities Commission which alleges that the platform has been lying to its customers

The crypto trading platform is said to have been misleading its customers by feeding them a false narrative about investment and storing private funds securely. In reality, argues the BC Securities Commission, the platform has been diverting money to gambling websites.

False Pretenses, Very Real Consumer Pain

ezBtc is alleged to have kept the ruse up and running knowingly, displaying holdings as usual and allowing users to buy certain cryptocurrencies. However, this was just smoke and mirrors, the regulator alleges, arguing that the numbers were not backed up by actual funds.

The money that was deposited was spent elsewhere, the agency told the media, including The Globe and Mail, which did the original reporting. This is not a verdict, as the regulator has allowed ezBtc to argue its case in a meeting at the regulator’s premises on June 27. This is an opportunity for ezBtc to talk and possibly convince the regulator why it’s in the wrong before an official hearing is scheduled.

The BCSC further alleges that ezBtc has also breached securities laws because its agreements with its users are in fact futures contracts or securities. ezBtc’s case dates back several years back already. The company’s website was shuttered in November 2019 when users realized that the platform was no longer online.

No transactions could be performed – including withdrawals which had people worried right away. Although ezBtc had claimed to secure all holdings in “cold storage,” those were well beyond anyone’s reach any more. Following a detailed investigation, the BCSC argued that ezBtc did not in fact store any of its user’s assets – or at least not much.

Company Balance That Was Never True

The regulator found out that the funds had been sent to two gambling websites but stopped short of naming them. However, the total amount diverted was around CA$13 million ($9.61 million)

ezBtc was in control of some 13,000 digital wallets for its customers between 2016 and 2019 for a total of 2,300 Bitcoin and 600 Ether. However, upon closer scrutiny, ezBtc rarely had more than 11 Bitcoin and 20 Ether on balance, meaning that the funds were constantly siphoned off without the knowledge of their users.

ezBtc has also gone dark. A phone and email connected to the website have stopped functioning. David Smillie, the company’s only director, had gone missing for the past several years or, rather – his whereabouts have been unknown.


Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.

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