Remember Live Bitcoin News’ coverage of Einstein Exchange, the now defunct cryptocurrency exchange stationed in Canada? Remember how the company took roughly $16 million of customers’ money with it? Well, turns out a lot of that money is lost, and Einstein now only possesses about $45,000 of its previous total.
Einstein Exchange: Losing Money Quickly
Most of the remaining money is made up of “hard assets,” according to an official statement, with about $15,000 comprised of various cryptocurrencies and the rest being cash. The company was shut down earlier in the month by the British Columbia Securities Commission (BCSC) after several customers complained that they were being denied access to their digital funds.
Many stated that while putting money into the exchange was easy, taking money out was a completely different story. Despite several emails being sent out to executives, customers said they were unable to pull any of their funds out of the exchange, and even received threatening messages in return, saying that if they continued to email and bother the staff, their accounts would be closed.
Law enforcement officials are now investigating the matter, and it looks like the company has wiped itself off the face of the Earth. The Canadian office building it once inhabited is now completely vacant, while none of the telephone numbers for the exchange appear to be operational at press time. This is likely to be a long case, indeed.
The company’s present deficit is widely owed to credit card and bank draft fraud, according to investigators. It is believed that the company may have owed customers as much as $10 million prior to being shut down. The company issued a statement claiming that much of the loss it has incurred is made up of “cryptocurrency assets.”
The company first came to fruition during the bitcoin boom of 2017. At the time, bitcoin was spreading its wings and on the verge of hitting its December high of nearly $20,000, the strongest the price has ever been. However, 2018 proved to be a “reversal of fortune” for bitcoin and the crypto space in general, with the world’s number-one cryptocurrency by market cap falling more than 70 percent and trading for roughly $3,500 by the year’s end.
Too Many People Are Mad
It is widely believed that Einstein Exchange is simply another company that got too caught up in the cryptocurrency hype and didn’t plan for the coming future. As a result, the company has seemingly lost most of its holdings and has given rise to a bunch of very angry customers.
It is believed that the company may have served as many as 200,000 clients from all around the world prior to its official closure. In all, about 200 to 300 people have filed complaints, claim investigators.