Canadian Crypto Exchange misappropriated more than $12M to place crypto bets

EzBtc and its founder, David Smillie, were just caught by the British Columbia Securities Commission (BCSC) for misappropriation of approximately 13 million Canadian Dollars (12 million SGD) of their customer's cryptocurrency investment and using the funds for gambling. BCSC found that in aggregate, 935,46 Bitcoin and 159 Ether were transferred by ezBtc to Smillie's exchange account, which was then used at various gambling sites online. The panel further noted that the deceit orchestrated by Smillie and ezBtc caused repairable damage as customers were unable to withdraw their assets.

According to court filing, sanctions will be issued to Smillie by September.

What is crypto gambling

Aside from traditional casino games, crypto casino also provides unique game versions such as dice games and special slot releases, which are often not available at Fiat currency accepting casinos. Not only have Crypto altered the face of online payments, but the best crypto gambling sites have also transformed the games we play, paving the way for a more updated online gambling atmosphere.

Bitcoin gambling and online casinos are merely two aspects of crypto gambling establishments. Apart from these, there are still a dozen more different sites that are currently out there in the market, offering its own distinctive design promotions and most crucially diverse levels of cryptocurrency acceptance. The popularity of these crypto casinos not only provide greater levels of security and privacy, but also offers bonuses and rewards that are not available in traditional casinos. The number of crypto casinos that offer competition is growing rapidly and many players are also abandoning traditional casinos is also expected to increase at an exponential rate as new cryptocurrency casinos open on a monthly basis.

Why are the benefits of using crypto for gambling?

There are a whole bunch of reasons why players are leaving traditional casinos and jumping onboard crypto casinos. Extra security, higher value bonuses, increased privacy, better bonus terms, faster payment processing, unique game selection are just the some benefits that crypto casinos offer to its customers. Needless to say, the use of crypto also frees users from the authority of the banks, which gives users complete control over their funds.

Another unique feature of crypto casinos is provably fair gaming. Traditional online casinos rely on random number generators (RNGs) to determine the outcome of games. However, there is always uncertainty regarding the fairness of these RNGs. Crypto casinos, on the other hand, use cryptographic algorithms that allow players to verify the fairness of each game. This transparency gives players peace of mind, knowing that the games are not rigged and that they have a fair chance of winning.

Is crypto gambling legal

But is crypto gambling legal? This issue is often labelled as a gray area, and the legality of crypto gambling varies significantly from country to country. While there are countries that have explicitly prohibited all forms of crypto gambling, there are other countries who have yet to put in place explicit regulations when it comes to the legality of crypto gambling. Lastly, there are also a few countries who are in the midst of integrating cryptocurrency into their law when it comes to online gambling. Hence crypto gambling laws are complex and they are open for interpretation, varying depending on the jurisdiction.

The rise of crypto gambling from a niche into mainstream

Crypto gambling indeed presents a compelling opportunity. Not only does it offer faster transactions, enhanced security, lower fees and greater autonomy over your cash. While regulators are still working through the regulations surrounding crypto gambling, we still cannot deny the potential for innovation and the disruption that it brings to the gambling industry. As the industry evolves, crypto gambling is poised to be a major player in the online gambling landscape.