Canada’s Revenue Agency is now looking into the corporate tax returns submitted by QuadrigaCX, the troubled cryptocurrency which collapsed earlier this year, taking approximately $134 million of users’ funds with it.
That’s according to the trustee overseeing bankruptcy proceedings, the Globe and Mail reports.
The exchange made headlines all over the world after its founder and CEO, Gerald Cotten, allegedly passed away in India from complications deriving from a chronic illness. He was thought to be the only person with access to the company‘s wallets, private keys, and passwords.
Following weeks of uncertainty, and adding to the mounting speculation, EY said in March that QuadrigaCX’s offline Bitcoin wallets were empty – aside from a single transfer of $400,000 in Bitcoin.
Although Quadriga’s demise has been shrouded in mystery, additional details have suggested that the exchange was doomed long before it collapsed and entered bankruptcy.
Back in June, a report from administrators EY, said the company had been operating a fraudulent cryptocurrency exchange.
It reportedly did not follow basic business processes, failed to maintain financial accounts, and mismanaged user and company funds.
Prior to EY‘s report, the Federal Bureau of Investigation (FBI) heightened its probe into the exchange, asking victims to come forward and answer a few questions to assist in its ongoing investigation.
Just last month, a Canadian judge approved more than $1.6 million in fees for businesses seeking to recover funds lost as a result of QuadrigaCX’s demise.
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Published September 17, 2019 — 11:35 UTC