When you’re new to cryptocurrency, you want a platform that feels safe. You look for features like cold storage, low fees, and clear customer support. ezBtc checked all those boxes - on paper. But behind the clean interface and confident marketing was a scheme that stole millions from real people. By the time users realized what happened, their Bitcoin and Ether were gone - vanished into online gambling sites and private wallets.
What ezBtc Promised vs. What Really Happened
ezBtc claimed to be a secure Canadian crypto exchange. It said 99% of customer funds were kept in cold storage - offline, untouched, safe from hackers. That’s a standard promise from legitimate exchanges like Coinbase or Kraken. But investigations by the British Columbia Securities Commission (BCSC) proved it was a lie. Instead of storing your Bitcoin, ezBtc moved it within minutes. One user deposited 0.2495 Bitcoin, sold it for over $2,500, and asked to withdraw the cash the next day. Within 14 minutes of that first deposit, the Bitcoin was already on a gambling site. The founder, David Smillie, had direct access to every dollar users deposited. He didn’t trade. He didn’t hold. He stole. The numbers are staggering. Over 2,300 Bitcoin and 600 Ether were deposited on ezBtc during its operation. Of that, Smillie took 935.46 Bitcoin and 159 Ether - about one-third of all customer funds. That’s roughly $9.5 million USD, possibly up to $13 million CAD. People lost life savings. Some borrowed against their homes. All because they trusted a fake platform.How ezBtc Fooled Users
It wasn’t flashy. It didn’t promise 10x returns. That’s what made it dangerous. ezBtc charged a 0.30% trading fee - slightly higher than the industry average of 0.25%. Withdrawals cost 0.001 BTC, which was normal. It accepted bank wire deposits. No credit cards. That’s actually a good sign - most scams push credit card deposits because they’re reversible. ezBtc didn’t need to be sneaky about payments. It just needed to look professional. Its website looked real. The support team responded quickly. The trading interface worked. Users could buy Bitcoin, sell Ether, check balances. Everything functioned - until they tried to withdraw. That’s when the silence started. Emails went unanswered. Live chat vanished. Accounts locked. And blockchain records showed the funds had been sent to gambling platforms like Bitcasino and Stake - places where crypto disappears fast, with no paper trail.Why No One Stopped It Sooner
Between 2016 and 2019, Canada’s crypto regulations were still catching up. There were no mandatory audits. No rules forcing exchanges to prove they held customer funds. ezBtc didn’t need to show proof of reserves. It didn’t need to be licensed. It just needed to look like it was. Meanwhile, other platforms were being investigated too. Binance got fined by FINTRAC for AML failures. Liquid MarketPlace was accused of stealing investor money. Catalyx got a cease-trade order from Alberta. But ezBtc was different. It wasn’t just negligent - it was designed to steal. The BCSC didn’t just shut it down. They called it a textbook case of fraud. Smillie wasn’t just the owner - he was the thief. And the commission found he knew exactly what he was doing. He didn’t make a mistake. He built a machine to take money.
What ezBtc’s Users Lost
People didn’t just lose money. They lost trust. One user told investigators they had saved for years to buy Bitcoin. They thought ezBtc was their chance to grow it safely. When they couldn’t withdraw, they called support every day. Smillie replied with reassurances: “Your funds are secure.” “We’re processing your request.” “It’s a technical delay.” Each message was a lie. The blockchain doesn’t lie. Records show every Bitcoin deposited was moved - fast, quietly, to places where recovery is nearly impossible. Investigation Counsel, a firm that helps crypto fraud victims, says they got daily calls during ezBtc’s peak. People cried on the phone. Some couldn’t pay rent. Others lost their businesses. The emotional toll was worse than the financial one.How to Avoid an ezBtc-Style Scam Today
ezBtc is gone. But new fake exchanges pop up every week. Here’s how to stay safe:- Check regulation: Only use exchanges registered with official bodies like the BCSC, SEC, or FINTRAC. If it’s not licensed, it’s not safe.
- Look for proof of reserves: Legit exchanges publish regular audits showing they hold enough crypto to cover all user balances. ezBtc never did.
- Read user reviews - but dig deeper: ezBtc had a 1.5/5 rating on CryptoGeek. Only two reviews? That’s a red flag. Real exchanges have hundreds.
- Never trust promises: If a platform says “99% cold storage,” ask for proof. If they can’t show it, walk away.
- Start small: Never put in more than you can afford to lose. If you’re tempted to borrow money to invest, you’re already in danger.
What Happened to ezBtc and Its Founder?
In 2019, the BCSC shut down ezBtc permanently. David Smillie was identified as the sole operator and mastermind behind the fraud. He was never arrested - he disappeared. No extradition request was filed. No public trial. His assets? Likely spent on luxury goods, gambling, or hidden in offshore wallets. Recovery for victims? Almost zero. Once Bitcoin moves to a gambling site, it’s mixed with other funds, broken into tiny pieces, and laundered through dozens of addresses. Tracing it is possible - but recovering it? Nearly impossible. The cost of legal action often exceeds the value of what’s left. ezBtc’s story is now taught in Canadian finance courses as a case study in crypto fraud. It’s cited in every discussion about why regulation matters. And it’s still referenced in 2025 - because the same scams are still happening.Is There Any Way to Get Your Money Back?
If you were a victim of ezBtc, the answer is bleak. The BCSC closed its case. No government fund exists to reimburse crypto losses. Private recovery firms charge thousands upfront and rarely deliver results. Some victims pooled resources to hire blockchain analysts to trace the stolen funds. One group tracked 120 Bitcoin to a wallet linked to a gambling site in Cyprus. But the site refused to cooperate. The wallet owner was anonymous. No legal jurisdiction applied. The trail went cold. The hard truth: once crypto leaves your wallet and enters a scam exchange, it’s gone. There’s no PayPal dispute button. No chargeback. No bank to call. That’s why due diligence isn’t optional - it’s your only protection.Final Warning: Don’t Let History Repeat
ezBtc didn’t use fancy tech. It didn’t need to. It used trust - the same trust you might feel when you see a clean website, a professional logo, and a team that answers emails quickly. Today, there are hundreds of new exchanges promising the same things. Some are legit. Most aren’t. You can’t tell by looks alone. You need proof. If you’re thinking of using a new exchange, ask: “Can they prove they hold my crypto?” If they can’t, or won’t - walk away. No fee discount, no referral bonus, no “limited-time offer” is worth losing your life savings. ezBtc is a warning. Not a review. Not a comparison. A graveyard of broken promises.Was ezBtc a real crypto exchange?
No. ezBtc was a fraudulent platform disguised as a crypto exchange. It pretended to hold customer funds in cold storage, but in reality, its founder David Smillie stole Bitcoin and Ether directly from user accounts and moved them to online gambling sites. It was shut down by the British Columbia Securities Commission in 2019 after a full investigation confirmed systematic theft.
How much money was stolen from ezBtc users?
Approximately $9.5 million USD (or up to $13 million CAD) in Bitcoin and Ether was stolen from ezBtc users. The British Columbia Securities Commission found that the founder diverted 935.46 Bitcoin and 159 Ether - about one-third of all customer deposits - to personal accounts and gambling platforms.
Did anyone go to jail for the ezBtc scam?
No. David Smillie, the founder of ezBtc, was identified as the sole person responsible for the fraud, but he disappeared after the investigation. No arrest was made, no extradition request filed, and no criminal trial took place. He remains at large, and there are no public updates on his whereabouts as of 2025.
Can you still use ezBtc today?
No. ezBtc was permanently shut down by the British Columbia Securities Commission in 2019. Its website is offline, its support channels are gone, and all trading functions have been disabled. Any site claiming to be ezBtc today is a copycat or phishing scam.
What should I look for in a safe crypto exchange?
Look for exchanges that are officially regulated in your country, publish regular proof-of-reserves audits, have transparent company details (real address, team names), and support multiple withdrawal methods. Avoid platforms that only accept wire transfers without clear documentation, or those that promise unusually low fees with no explanation. Legit exchanges like Coinbase, Kraken, and Bitstamp have years of public compliance records.
Why did so many people fall for ezBtc?
ezBtc looked professional. It had a clean website, responsive customer service, and charged fees that matched industry standards. It also used trusted language like “99% cold storage” and “secure Canadian exchange.” Most users didn’t know how to verify those claims - and the platform exploited that lack of knowledge. People trusted what they saw, not what they could prove.
Jasmine Neo
October 30, 2025 AT 22:45ezBtc was a textbook rug pull. Cold storage? More like cold storage for your life savings. They didn't even bother hiding it - just moved funds straight to Bitcasino and Stake. The fact that they accepted bank wires makes it even worse. Real exchanges don't need to be flashy. They just need to be honest. This wasn't incompetence. It was engineering theft.
And now we're supposed to trust 'regulated' exchanges? The BCSC shut it down in 2019 - but how many more are still running under the same playbook? No audits. No transparency. Just a pretty website and a team that replies to emails like they give a damn.
Meanwhile, the founder vanished. No extradition. No trial. Just a quiet exit while people lost homes. This isn't crypto. This is financial terrorism dressed in a UI kit.
Ron Murphy
October 31, 2025 AT 18:39It's wild how many people still think 'professional-looking' means legitimate. ezBtc had all the hallmarks - clean interface, responsive support, even normal fees. That’s the real danger. The worst scams don’t promise moonshots. They promise normalcy.
I remember when I first got into crypto. I thought if it looked like Coinbase, it was safe. Turns out, scammers have been copying the design language for years. The blockchain doesn’t lie, but the website? Oh, it lies beautifully.
Prateek Kumar Mondal
November 1, 2025 AT 08:49Nick Cooney
November 2, 2025 AT 19:37So let me get this straight - a guy runs a crypto exchange, steals 935 BTC, and the Canadian authorities just... let him disappear? No extradition? No INTERPOL alert? Wow. The only thing more terrifying than the scam is the fact that nobody cared enough to chase him.
Also, '99% cold storage' is now the new 'trust me bro' in crypto marketing. Next up: 'We use quantum encryption and a certified monk to sign transactions.'
Typo: 'proff' of reserves. I mean... you know what I meant.
Clarice Coelho Marlière Arruda
November 3, 2025 AT 07:43okay but like… why do people still fall for this? i saw a post yesterday from someone asking if 'BtcHub' is legit. same exact thing. same website vibe. same 'we're canadian' thing. why is no one learning?
also i typo'd 'withdraw' as 'withraw' and now i'm mad at myself
Brian Collett
November 5, 2025 AT 05:45ezBtc didn’t need to be flashy. It just needed to be quiet. No hype. No influencers. No promises of 10x. That’s why it worked. People trusted it because it didn’t scream ‘scam.’ It whispered ‘safe.’ And that’s the most dangerous kind.
I’ve seen this before. Remember Quadriga? Same script. Same outcome. The only difference? ezBtc was smarter. They didn’t even bother to fake the blockchain. They just moved the coins and vanished. No drama. No panic. Just silence.
Allison Andrews
November 5, 2025 AT 21:26It’s not just about the money. It’s about the erosion of faith. When you lose $5,000 to a scam, you lose more than cash. You lose the belief that systems can be trusted. That’s why this case matters beyond the ledger. It’s a psychological wound. And it’s one we’re all carrying now.
Every time someone says 'just use Coinbase,' they’re ignoring the fact that even the big names have been hacked, frozen, or compromised. The real lesson isn’t 'don’t use ezBtc.' It’s 'don’t trust any exchange until you’ve verified their proof of reserves - and even then, be skeptical.'
We’re not just investing in crypto. We’re investing in a social contract that’s still being written.
Wayne Overton
November 6, 2025 AT 03:01Alisa Rosner
November 6, 2025 AT 15:40PLEASE PLEASE PLEASE everyone - if you're new to crypto, start with Coinbase or Kraken. NO EXCEPTIONS. 🚫🚫🚫
ezBtc looked so legit. I almost fell for it myself back in 2017. I checked the website, saw 'Canadian,' saw 'cold storage,' and thought 'this is safe!'
Turns out - if they don't publish a proof-of-reserves audit on their site every month, it's a RED FLAG. 🔴
Also - NEVER use an exchange that doesn't let you withdraw to your own wallet. If they lock your coins? That's a prison. Not a platform.
And if you're thinking of borrowing money to invest? STOP. Right now. Go take a walk. Breathe. You don't need this stress. 💙
MICHELLE SANTOYO
November 7, 2025 AT 14:58Wait - so the government shut down ezBtc... but didn't arrest the guy? So now we're supposed to believe that 'regulation' fixes anything? LOL. This is the same system that let Enron, Lehman, and FTX happen.
Maybe the real scam isn't ezBtc. Maybe it's the whole idea that 'someone is watching out for us.'
What if the regulators are just part of the game? What if they shut down the obvious ones to make you feel safe while the real ones - the ones with lawyers and lobbyists - keep stealing?
Just saying. 🤔
Dr. Monica Ellis-Blied
November 9, 2025 AT 13:28Let’s be clear: this isn’t a failure of crypto. It’s a failure of oversight. We have the technology to prove reserves in real-time - Merkle trees, zk-SNARKs, on-chain audits. But we don’t have the political will to enforce them.
Victims didn’t just lose money. They lost dignity. They lost hope. And we, as a community, failed them by not demanding better standards earlier.
Every time you use an unregulated exchange, you’re enabling the next ezBtc. Don’t say 'I’m just one person.' One person’s negligence is the seed of a billion-dollar fraud.
Protect yourself. Demand transparency. And if you see someone falling for a fake exchange - don’t just warn them. Show them how to verify. Teach them. That’s how we heal this ecosystem.
Lena Novikova
November 11, 2025 AT 13:04Olav Hans-Ols
November 12, 2025 AT 23:15Man, I still get chills thinking about this one. I knew someone who lost their entire life savings to ezBtc. They were a teacher. Saved for 10 years. Thought they were building a future.
Now they work two jobs just to pay rent. And the guy who did it? Probably sipping rum on some beach right now.
But hey - at least the website looked nice, right? 😔
Look, I get it. Crypto is confusing. But you don’t need to be a genius to ask: 'Can you prove you have my money?' If they hesitate? Run. Don’t walk. Just run.
Kevin Johnston
November 14, 2025 AT 10:08ezBtc was a ghost. No arrests. No trial. Just silence.
But here’s the real win - we’re talking about it now. People are learning. That’s how we stop the next one.
Share this post. Tag your friends. Make sure the next person doesn’t get burned.
💙 Crypto is powerful. But trust? That’s the real asset.
Herbert Ruiz
November 14, 2025 AT 23:56Saurav Deshpande
November 15, 2025 AT 20:45Think about it - what if ezBtc was never real? What if it was a controlled operation? A honeypot to justify more surveillance? The 'founder' disappeared… but the blockchain records? Perfectly timed. The BCSC 'investigated'… and then nothing. Coincidence?
Or did the system need a scapegoat to push more control? Who benefits from people being afraid to use crypto?
They didn’t just steal money. They stole our freedom to trust.
And now they want us to trust them more.
…I’m not buying it.
Paul Lyman
November 17, 2025 AT 02:47Guys. I know it’s scary. But don’t give up on crypto. ezBtc was a bad apple. Don’t let it rot the whole basket.
Start small. Use Coinbase. Enable 2FA. Withdraw to your own wallet. That’s it. You don’t need to be a genius. Just be careful.
I lost $2k to a fake exchange in 2020. I cried. I raged. Then I learned. Now I help new people avoid the same trap.
You got this. 💪
And if you’re thinking of borrowing money? Don’t. Seriously. Just… don’t.
Frech Patz
November 18, 2025 AT 12:38It is noteworthy that the British Columbia Securities Commission’s investigation revealed that ezBtc operated without any form of third-party audit or financial disclosure. This absence of verifiable accountability is the critical vulnerability exploited by the operator. The technical sophistication of the platform’s interface masked its fundamental illegitimacy. The case underscores the necessity of cryptographic proof-of-reserves as a baseline requirement for any entity purporting to hold customer assets in digital currencies.
Furthermore, the lack of international legal recourse highlights the jurisdictional fragmentation inherent in global digital asset regulation. Recovery mechanisms remain nascent and insufficient.
Derajanique Mckinney
November 19, 2025 AT 15:44ezbtc was sus af 😭 i almost signed up in 2018 bc the site looked so clean… like a real bank but with more crypto emojis 💸
thank god i didnt… but my cousin did… now she cries every time she sees a bitcoin logo 😭😭😭