Canada’s Revenue Agency Will Pursue The Revenues Of QuadrigaCX

Canada’s Revenue agency will start going after the hidden revenues of the QuadrigaCX crypto exchange which shut down in January 2019 after it went through a long bankruptcy procedure as we read previously here in the coming altcoin news.

The revenue agency of the country has turned its attention to the potential revenues that could be hidden from the now-defunct exchange. The Globe and Mail reported that the Trustee on QuadrigaCX bankruptcy case has already provided tax return files for the past earnings but so far the exchange has faced investigations by the FBI for the same case and also by the Canadian Royal Mounted Police.

Ernst&Young was the first company appointed as a Monitor and later as a Trustee when QuadrigaCX entered the bankruptcy procedure. The auditing company provided prolonged research of the company’s assets aiming to uncover the exchange’s reserves of Litecoin, Bitcoin, and Ethereum. The research, however, did not yield any addresses and it turned out over the course of its life that the exchange could have emptied out both of the crypto and cash reserves. The owner of the exchange Gerald Cotten was later found and pronounced dead in India in 2018 just a month before the exchange closed. It was believed that the owner controlled the large wallets and his death led to the loss of the private keys. The investigations showed that the finances of QuadrigaCX were used privately and the Cotten even purchased houses and other luxury items with those funds.

The losses from the exchange reached between $70 and $130 million. Canada’s revenue agency started investigations that showed some of the funds from the exchange were moved to Kraken. The European market is one of the markets that offer liquidation for cash and QuadrigaCX was one of the exchanges that used to move its crypto to cash and attract large-scale sales. The bankruptcy of the cryptocurrency exchange affected more than 115,000 traders and the detailed investigation that was conducted by Ernst&Young and many legal teams cut all of the funds that were available for the creditor redistribution. Canada’s revenue agency investigation will also incur additional fees according to the trustee’s statements which we have in our latest cryptocurrency news.