Two months after it was revealed that the late QuadrigaCX CEO transferred customer funds into his own accounts, the court-appointed monitor overseeing QuadrigaCX’s bankruptcy proceedings said it is complying with four active law enforcement investigations – including a probe by the Royal Canadian Mounted Police’s financial crime division in Milton, Ontario.
According to The Globe and Mail, the RCMP has made “formal document requests” to Ernst & Young (EY), which was appointed to oversee the search for the missing money.
In June, the US Federal Bureau of Investigation (FBI) started its own inquiry, publishing a questionnaire in search of victims of the now-bankrupt cryptocurrency exchange platform. The Ontario Securities Commission (OSC) also confirmed to The Globe on Tuesday it has launched its own investigation.
As a result of the newly opened probes, EY is requesting that the case be moved from Nova Scotia to Ontario, where many of the probes and investigations into QuadrigaCX are based.
EY cites the convenience of having the court case play out in Toronto rather than Nova Scotia due to many of the individuals involved being located in Toronto. Having the court attendance take place in Toronto would eliminate “the need for a significant number of professionals to incur costs to travel from Toronto to Halifax,” EY said in a report released on Monday.
The firm also noted in the report that is has been contacted by representatives from other federal agencies from Nova Scotia and British Columbia, but did not share names.
QuadrigaCX CEO Gerald Cotten reportedly passed away in India in December from complications of Crohn’s disease. His death essentially barred all access to Quadriga’s funds and coins, making millions of dollars’ worth of crypto unobtainable. The fight to release the locked crypto was approved by a Nova Scotia court to transition its restructuring proceedings into a bankruptcy case in April.