The Vancouver-based trading platform, which owes customers more than $16 million, has shuttered and filed for bankruptcy. The B.C. Securities Commission (BCSC) has applied to have Einstein put into receivership in a bid to acquire some of the company’s assets after a lawyer for the company told BCSC it was closing, citing “lack of profit,” according to court filings. (Globe and Mail)
Talking point: Einstein’s bankruptcy follows that of QuadrigaCX, another Canadian cryptocurrency exchange that left more than 76,000 clients short nearly $215 million after the company’s CEO died suddenly in December 2018 without leaving anyone with the private key needed to access clients’ assets. Since then, the Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada have proposed new rules to reduce the risk involved with crypto trading, including around how companies securely manage keys to unlock cryptocurrency wallets and how best to audit crypto trading. Public consultations on the proposal ended in May, but no measures have yet been implemented.