The QuadrigaCX Saga: A Brief Overview
The story of QuadrigaCX resembles an epic drama, with all the makings of a Hollywood thriller—mysterious deaths, missing funds, and a cast of legal eagles. Following the untimely death of founder Gerald Cotten in December 2018, the crypto exchange found itself in a whirlwind of controversy, leaving countless investors in a lurch as $190 million in user assets disappeared into thin air. Just when you thought it couldn’t get any more convoluted, enter law firm Miller Thomson.
Diving Deeper with Kroll
On September 8, 2023, Miller Thomson snapped into action, announcing the hiring of Kroll, a consultancy known for tackling financial sleuthing. Tasked with untangling this financial web, Kroll isn’t alone; they’ve teamed up with Coinfirm, the blockchain forensics guru known for its sophisticated analytics engine aimed at asset recovery. Just like Batman and Robin, but for crypto investigations!
The Role of Coinfirm: The Blockchain Detectives
So why did Miller Thomson choose Coinfirm? Well, in a world where every transaction can be traced, having a partner skilled in crypto asset tracing is like having the Google Maps of financial investigation. Coinfirm specializes in everything from fraud sniffing to anti-money laundering compliance. They’ll be sifting through a subset of transaction data, although, due to the sensitive nature of the case and ongoing law enforcement inquiries, specifics are as scarce as a well-kept secret.
Money Matters: Kroll’s Financial Limitations
In the corporate world, it’s important to keep an eye on those budgetary constraints. Kroll’s fees are capped at a sweet $50,000, with a contractual indemnity of up to $150,000. This financial arrangement is a collaborative decision involving Miller Thomson, bankruptcy estate inspectors, and the Official Committee of Affected Users. Let’s just say, this investigation won’t be a bottomless pit of spending!
Crypto Capital: The Panama Connection
Meanwhile, the spotlight also shines on the Panama-based payment processor, Crypto Capital. Miller Thomson has handed over intriguing details about Crypto Capital’s role to Ernst & Young, the monitor overseeing Quadriga’s bankruptcy. While there isn’t much proof that Crypto Capital owed anything at the time of bankruptcy, the door remains ajar should new information burst forth like a surprise plot twist!
What’s Next for Creditors?
As exhilarating as it is to follow this tale, the notice from Miller Thomson suggests that creditors shouldn’t expect a fairy-tale ending anytime soon. The distribution process is anticipated to be a slow crawl, largely impacted by the Canada Revenue Agency’s audit regarding Quadriga’s tax liabilities. With the pandemic causing delays, who knows how long this ride will last?
Stay tuned! This story has all the elements of a saga destined to be continued—because when it comes to QuadrigaCX, mystery never truly sleeps.
