Canada’s QuadrigaCX Connected To Suspicious Binary Options Scam Firm ‘Valoris HK Ltd’
Canada’s QuadrigaCX Connected To Suspicious Scam Firm
According to a group of independent investigators, there seems to be a money trail between QuadrigaCX – one of Canada’s biggest crypto exchanges – and a suspicious company.
This was revealed because a Twitter account known as “Spoofy McSpoofface” with handle @ExkrementKoin, recently discovered that QuadrigaCX requested that its clients credit a bank account operated by Valoris HK Ltd, a company based in Hong Kong. The tweet from the account read “Like other forex and binary options scammers, Quadriga directed some of its customers to deposit money into ‘Valoris HK Ltd.,’ at Bank Pekao in Warsaw, Poland.”
Validation Of Claims
Spoofy Mcspoofface authenticated his accusation by posting a screenshot of a Reddit thread from last year. The thread showed an alleged customer of the crypto exchange saying that QuadrigaCX had via email, asked him to send his deposits to the account owned by Valoris.
However, QuadrigaCX has responded and explained that their global company for handling payments called Crypto Capital, actually did send the email.
According to Quadriga:
“For wire transfers, we use the international payments company, Crypto Capital. These instructions are for our account with them. Unfortunately, banks in Canada will not permit Bitcoin companies to have bank accounts at their institutions.”
Possible Dealings Between Valoris HK Ltd. And QuadrigaCX
The above claim seems to have explained reasonably that the crypto exchange consistently used Valoris HK Ltd, to collect payments from their customers. Even though Quadriga has acknowledged having dealings with the Hong Kong based offshore company, another different claim has surfaced about the firm. This report has asserted that Valoris HK Ltd., has links to and also accepted payments for forex and binary options scammers.
To further prove this, Spoofy McSpoofface went ahead to attach another screenshot from a write-up issued on December 11, 2017. The article published on Times of Israel at the time, told the story of a Canadian depositor, losing his entire life’s savings in an options scam. The specific amount supposedly totaled $134,000, deposited to a bank account controlled by the same Valoris HK Ltd.
The article further stated that “an online search for this bank account reveals that it, or an account by the same name at Bank Pekao, is still actively receiving funds. The same account has been used to accept payments for TD Markets – a Binary Options and forex trading site – as well as QuadrigaCX, a bitcoin exchange that claims to be based in Vancouver, Canada.”
Investigators are currently unsure about how much money exactly, exchanged hands between Quadriga and Valoris HK. This is because, since September 2015, Quadriga has not issued any independent financial audit.
Quadriga co-founder, Gerald Cotton, recently died in January 2019. It was alleged that only he had the passwords to the exchange’s cryptocurrency assets which is said to be about $190 million. However, some researchers have claimed that the death was faked and that QuadrigaCX had no crypto assets.
Currently, even though the Ontario Securities Commission has decided to investigate the case, there is no real proof that Gerald Cotton is still alive or that there really were no crypto reserves owned by Quadriga.