QuadrigaCX victims are being asked to help investigate a new potential way to retrieve their funds. They received a letter from Miller Thompson, their court appointed lawyers, asking for any information they may have relating to Crypto Capital.
The letter lays out pretty clearly why Crypto Capital is now the subject of their focus. Crypto Capital Corp. (“Crypto Capital”), may have been a payment processor for Quadriga in the final quarter of its operation,” they write. “[Miller Thompson] has been investigating, since its appointment, whether any Quadriga funds were potentially retained by Crypto Capital.”
If victims are unable to understand why a shadowbank like Crypto Capital could have their funds, the lawyers lay out a very similar case from Bitfinex that explains why. “Bitfinex, another cryptocurrency exchange, has asserted that it was defrauded by Crypto Capital.”
So how can victims help? The lawyers list out several ways, including any emails with the shadowbank, financial statements that might be linked to them, and any correspondences that could link back to key Crypto Capital figures.
Crypto Capital has been a central figure in Bitfinex’s legal drama with the Southern District of New York. The exchange has been accused of cooking the books to cover up an $850 million loss, caused in part by Crypto Capital having its funds seized by Polish authorities.
At roughly the same time that drama started was when QuadrigaCX was having its own problems with withdrawals crop up. While all investigations have shown that founder Gerald Cotten likely mishandled user funds in his own trading habits, evidence that Crypto Capital was also keeping the Canadian exchange’s savings has Miller Thompson hoping that victims could get some money back if a strong link is found.
It’s a long shot, considering similar investigations by Bitfinex’s legal team haven’t produced much yet, but it could be the best hope QuadrigaCX victims have right now. A year of frustration recently led some victims to request Cotten’s body be exhumed, so they could prove for themselves that the exchange’s founder was really dead, and not on the lam with their funds.
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