According to a recent report from bankruptcy trustee— Ernst & Young (EY), Canadian crypto exchange QuadrigaCX is being investigated by at least four different law enforcement and regulatory agencies.
George Kinsman, the EY employee and bankruptcy trustee appointed by the court to be in charge of closing down the firm, and the refund of funds to the exchange’s customers wrote in a recent report stating the different investigations surrounding the company, and EY’s move to transfer bankruptcy funds recovered from the ongoing investigation from Nova Scotia to Ontario.
The agencies involved in the ongoing investigation include the FBI, an Australian investigative agency, and the Royal Canadian Mounted Police (RCMP). There also seem to be another investigation, however, the agency behind it is yet to be disclosed.
Kinsman wrote that:
“The Trustee is aware of at least four (4) independent active law enforcement or regulatory reviews in progress which have included inquiries or in some cases formal requests for documents and/or data disclosure from the Trustee,”
“Other agency requests may subsequently materialize.” he continued.
However, one of these requests is under the confidentiality clause which means that Kinsman cannot reveal any further information regarding the matter. Statutory restrictions might also apply.
Also, Kinsman expects law enforcement and regulatory agencies to continue their findings, he revealed that their “demands may be significant,”
He added that:
“Furthermore, as a result of the confidentiality and non-disclosure restrictions inherent in these processes, the Trustee is unable to share details with and obtain approval of its activities from the Inspectors and therefore will require an ongoing direction from a court. In addition, given the complexity of the requests made or anticipated to be made of the Trustee, it is expected that multiple court attendances will be required to obtain assistance with these issues and provide direction to the Trustee.”
In other news, Quadriga shut down earlier this year after Gerald Cotten and the exchange’s only actual staffer was reported dead.