A new authority joins the investigative search on Quadriga CX, bankrupt digital asset exchange that lost over $190 million USD of customer’s funds.
Ever since the Quadriga CX case broke out, whereby the Canadian digital asset exchange CEO, Gerald Cotton, reportedly died in India taking to the grave the private keys of users’ funds, a multitude of cases have been opened against the exchange.
Furthermore, a number of law enforcement agencies have started investigations on how to recover traders’ funds from the exchange. The Canadian Revenue (CRA) becomes the latest authority to join the chase in the Quadriga CX case.
CRA audits corporate tax returns by the exchange
According to a press release on Globe and Mail, the CRA is auditing the corporate tax returns filed by the exchange from Oct. 1, 2015, to Sept. 30, 2018. The authorities are looking into possible misconduct in the management of customers’ funds with Ernst & Young (EY), the firm’s bankruptcy trustee pledging full cooperation.
“Accordingly, the Trustee is focused on conducting its document collection, organization, review and production efforts in as cost effective a manner as possible […] it is not expected that the Trustee will be in a position to respond to the CRA Audit request at this time.” – EY, Banking Trustee
While the company looks forward to work with CRA to find out the best way forward to compensate the 115,000+ customers of the digital exchange, the Trustee will consult with the courts on the sharing of documentation, and information. The Bankruptcy Trustee states,
“The Trustee intends to discuss the request for information with CRA Audit and their counsel and will return to Court for further direction, if necessary.”
Late last month EY Audit released a statement on four investigative agencies including the FBI, the Royal Canadian Mounted Police, and an unnamed Australian agency all part of the auditing process.