QuadrigaCX under Ontario Securities Commission’s scanner
QuadrigaCX might have gotten immunity from creditors however, the exchange has caught the eyes of the Canadian regulators. The Ontario Securities Commission [OSC] has launched a probe into the crypto exchange to check whether it has violated any securities laws.
“Given the potential harm to Ontario investors, we are looking into this matter and have already been in contact with the monitor,” said OSC, according to a Reuters report. The Canadian Securities Authority [CSA] had recently declared that there was no crypto trading firm that has received regulatory approval in Canada.
The report stated that the OSC could look into possible violations of the securities laws with respect to trading cryptocurrencies on the exchange. If found guilty the regulator could bring an enforcement action and money that is left in the coffers of QuadrigaCX will be used to pay off the creditors.
QuadrigaCX, the Canadian crypto exchange, fell into a quagmire after the death of its CEO Gerald Cotten which left $215 million user funds trapped in his laptop. Cotten’s wife Jennifer Robertson confessed that she did not know the password or the recovery key to unlock the laptop. The firm declared that they couldn’t access the funds because they were kept in cold storage on Cotten’s laptop to which he had the sole access.
A hearing that happened on February 5 granted creditor protection for QuadrigaCX. A 30-day stay was granted to the exchange and they were asked to settle the claims of the creditors. Several theories are surfacing regarding the Canadian exchange’s claims of inaccessible crypto funds belonging to its 115,000 customers. Some say that this is a scam to obtain customer funds.
Reportedly, Quadriga has no office or a bank account. It might take a while to figure out the financial details of the company. Creditors are anticipating an extension of the stay granted by the Nova Scotia court.
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