During the time when Bitcoin transactions entered into a bedlam following a sudden surge in transactions in 2017, QuadrigaCX started encountering problems in its accounts unable to handle copious amounts of cash flows.
But after the prices of the virtual currencies slashed, the company entered into debt with no way to pay off their users. The payment processor that they used indicated a loss of over $850m, and since then QuadrigaCX has embroiled in controversy as to how it paid its customers.
In the year 2018, Gerald Cotten, the CEO of the firm, was reported to have died without disclosing the company’s account access credentials. This marked the inception of scrutiny that led to strict investigations.
4 officials from the government regulations began individual investigations into the matter.
CRA has now joined hands with the investigation of QuadrigaCX. Recent reports say that CRA had to execute an audit into the company’s finance operations on September 16th. It has also asked for tax documents of the company dated October 01, 2015 to September 30, 2018.
The trustee overseeing the company’s insolvency undertakings said that giving out all the requisite documents to the investigators is an essential step in the acquittal from the controversy. Although court hearings will be held, and the findings will be officially discussed in the court.
EY, the consulting firm has started document collecting and reviewing as requested by CRA. Meanwhile, accusations over the company remain intact as customers seem adamant in their belief that the CEO’s death was a fake story in order to cheat customers in the exit scam.
The FBI has also joined the attorney office U. S. for Columbia, the Internal Criminal Investigation for Revenue service, and Justice Computer Crime department along with a section of Intellectual Property to aid the investigation.
The FBI and IRS-CI are legally mandated to identify victims of federal crimes that they investigate and provide these victims with information, assistance services, and resources,
a recent statement state.
The company shut down in January after the CEO’s death and over 115,000 users suffered a loss worth $195 million in the form of virtual currencies as well as cash. The company is already undergoing proceedings of bankruptcy in Canada.
The FBI is also nagging the victims to reveal any unusual or new info on the transactions with the exchange. Particularly, the questionnaire published by the agency requests the victims to provide information on whether they did transactions with fiat currencies of the exchange along with using bank accounts from the U.S. to execute the transactions. FBI is also asking users to provide some form of identification data to opening accounts in QuadrigaCX.
