A Nanaimo-based cryptocurrency company, ezBtc, and its CEO, David Smillie, have been hit with financial sanctions totaling $18.4 million by the BC Securities Commission (BCSC). The BCSC found that the company had committed fraud by diverting funds into Smillie's personal account and gambling sites. Smillie was also given an $8 million administrative penalty, and both he and his company must repay customers a combined total of $10.4 million.
The BCSC stated that Smillie had 'blatantly and repeatedly lied to customers' and threatened those who complained publicly. Smillie is now banned from participating in B.C.’s investment market except as an investor through a registered advisor, and ezBtc is permanently prohibited from trading or engaging in promotional activity