Provincial securities regulators in British Columbia, Canada, won’t be investigating the QuadrigaCX . However, new developments could see Canada’s largest securities body, the Ontario Securities Commission (OSC), begin an investigation.
On Friday, according to , the OSC has confirmed in a statement it will be looking into exchange QuadrigaCX, where currently $190 million in has been lost. Though an OSC spokesperson did not confirm if the regulator will conduct a formal investigation, it said:
Given the potential harm to Ontario investors, we are looking into this matter.
The OSC’s role, as the Ontario provincial arm of the Canadian Securities Administrators (CSA) is to protect regional investors. In its “2018-2019 Statement of Priorities,” the body to “innovative ” of and actively encourages start-ups in the province.
Canada has yet to beef up crypto and add a more comprehensive legislative framework for the sector. But it has also against illicit ICO offerings and the OSC may well decide to pursue QuadrigaCX further.
Allan Goodman, co-chair of a technology group at Goodmans LLP believes the OSC would first check if QuadrigaCX has breached securities laws in Canada. He stated:
For example, should (Quadriga) have been registered as an exchange and were any securities laws breached with respect to the of the coins on the exchange?
Earlier, the British Colombia Securities Commission (BCSC) said QuadrigaCX was . It will take no action to benefit those affected.
A BCSC spokesperson told Bloomberg in an email:
[BCSC] does not currently have any indication that Quadriga CX, the crypto asset platform, was in securities or derivatives or operated as a marketplace or exchange under British Columbia securities laws.
QuadrigaCX – An Elaborate Scam or an Unprecedented, Unexpected, Scenario?
The QuadrigaCX is unprecedented. Its founder Gerald Cotten, reportedly the only person with access to QuadrigaCX cold storage died suddenly in India. There were no protocols in place to allow another QuadrigaCX employee access and now the $190 million belonging to QuadrigaCX users.
The Quadriga “cold wallets” are about as cold as Gerald Cotton’s corpse, which is likely not very cold.
— Emin Gün Sirer (@el33th4xor)
There is ongoing speculation about whether Cotton is really dead. Or if this could be some elaborate scam, as well as if QuadrigaCX really held balances in cold storage.
I’m seeing NO indication of Quadriga ever having cold / reserve wallets for ETH. Looking at their 3 main addresses:
0x027beefcbad782faf69fad12dee97ed894c68549 (green)
0x0ee4e2d09aec35bdf08083b649033ac0a41aa75e (blue)
0xb6aac3b56ff818496b747ea57fcbe42a9aae6218 (purple – active)— Taylor Monahan (@tayvano_)
One user, Ethan Lou, with $2,000 invested in the platform and who met with Cotten in 2014, writing for the Toronto Star :
Cotten’s death in India is suspicious. Vancouver’s Quadriga had been having cash-flow problems for months. Twelve days before Cotten’s death, the man made a detailed will, including money for his Chihuahua — how did he neglect his laptop password?
Two weeks before he died, taking the whereabouts to the keys of the exchange’s cold with him, Mt. Quadriga CEO Gerald Cotten signed a will leaving $100,000 CAD for his two .
— Amy Castor (@ahcastor)
Last Tuesday, a judge gave QuadrigaCX a on claims from creditors and potential lawsuits while the exchange continues to try to gain access to Cotton’s laptop and the millions in lost .
Published at Sun, 10 Feb 2019 08:03:44 +0000
