The law firm acting on behalf of creditors of defunct cryptocurrency exchange QuadrigaCX has engaged consultants Kroll in its bid to get to the bottom of the $190m in asset losses sustained by its clients back in 2019.
Canadian law firm Miller Thomson said it is working with Kroll and blockchain forensics firm Coinfirm to investigate transaction data that could provide more evidence against QuadrigaCX and its founder Gerard Cotten.
The exchange is at the center of a scandal surrounding the death of Cotten in late 2018—an event which some have cast suspicions over. Following his death, it emerged that CEO Cotten was the only person to have access to cold wallets containing substantial amounts of digital currency belonging to the exchange. As a result, the exchange collapsed, leaving its users out of pocket.
Kroll and Coinfirm will analyze blockchain transaction data for evidence of foul play, and any findings are expected to be passed directly to law enforcement. Due to what Miller Thomson described as the “sensitive nature” of its enquiries, the details of the investigation are not expected to be reported further publicly.
Miller Thomson has also identified links with Crypto Capital, the notorious Panama based payment processor which has been linked to suspicious activity several times in recent years.
According to the law firm, “there is currently insufficient evidence to establish that Crypto Capital owed any funds to Quadriga as of the date of bankruptcy,” though they “will consider recovery avenues available to the Quadriga estate” should later evidence emerge.
For creditors who remain affected by the collapse of the exchange, the firm pointed out that obtaining funds was likely to remain a long process.
“The most material impact on the speed of distribution will be the CRA [Canada Revenue Agency]’s audit of Quadriga’s tax liabilities.”
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