QuadrigaCX under investigation by at least four different regulatory watchdogs since CEO, Gerald Cotten, was reported dead. The defunct Canadian exchange is reportedly under investigation by the FBI, and the Royal Canadian Mounted Police (RCMP) as well as an Australian agency. Moreover, there seems to be another investigation being conducted around it; however, the agency behind has not been revealed.
This was revealed through the latest report by bankruptcy trustee Ernst & Young (EY). Currently, EY employee George Kinsman is the court-appointed bankruptcy trustee for overseeing QuadrigaCX’s shutdown. Moreover, George’s job description includes monitoring the return of user funds by the exchange. He previously reported on EY’s ongoing recovery of crypto and fiat for its clients.
EY wants to change the location of bankruptcy proceeding from Nova Scotia to Ontario that reportedly will decrease the costs in the next proceedings. EY is aware of four ongoing investigations by different independent law enforcement agencies. These agencies have asked questions and in some cases, presented formal requests for data disclosure from the trustee.
George reported that one such request included a confidentiality requirement and hence prohibits George from revealing anything further. Due to the complexities of these requests, it is expected that the trustee will require several court attendances as his guide.
Quadriga crashed earlier in 2019 when the company’s CEO Gerald Cotten was reported dead. He was the company’s only employee and hence the only employee to have access to the exchange’s holdings. The investigation following his death revealed that he had used customer funds to purchase personal luxury items.
EY’s current job is to repay the users by selling assets belonging to Cotten’s estate while continuing its efforts with law enforcement agencies.
Cryptopolitan has previously covered news about QuadrigaCX’s crash that can be viewed here.