Missing QuadrigaCX funds linked to shadow bank Crypto Capital?

• Lawyers representing the QuadrigaCX users have requested the victims to disclose any information related to Crypto Capital.
• If the link between the shadow bank and QuadrigaCX is established, the victims could get their funds back.

Miller Thomson LLP lawyers are representing the users of now-defunct crypto exchange QuadrigaCX. They are looking into the connection between the former Canadian exchange and Crypto Capital, a shadow bank based in Panama. In a letter published on its website, Miller Thomson is requesting QuadrigaCX victims to provide them with any kind of information relating to Crypto Capital. 

An excerpt from the publication reads:

As you are aware, Ernst & Young Inc. (the “Trustee”) has been unable to locate QuadrigaCX’s basic corporate records or accounting records. As a result, Representative Counsel is asking Affected Users for assistance on this matter to uncover whether Crypto Capital held Quadriga funds.

Furthermore, the letter talks about ways in which the victims can disclose information to reveal if Crypto Capital held funds for QuadrigaCX. These listed ways include correspondences, financial statements, etc. The letter also mentions the ongoing case that the shadow bank has with the US Department of Justice (DoJ). It also notes Bitfinex’s claim about being defrauded by Crypto Capital.

In the legal battle between Bitfinex and the office of the New York Attorney General (NYAG), Crypto Capital has played a vital role. NYAG accused Bitfinex of misappropriating around $800 million worth of customers’ funds. Additionally, iFinex, Bitfinex’s parent company, was accused of using Crypto Capital to carry out shadow banking. Miller Thomson is hoping that if they’re able to prove that there’s a link between QuadrigaCX and Crypto Capital, then the victims could get their funds back. 

About a year back, after the CEO of QuadrigaCX passed away, about 76,000 victims of the exchange have been fighting hard to get their funds back. In September 2019, the Nova Scotia Supreme Court approved the relocation of the bankruptcy proceedings to Toronto, where most of the victims reside.

Miller Thomson also submitted a letter to the Royal Canadian Mounted Police, asking to exhume the body of the CEO. According to the lawyers, this will confirm the death and expose the cause of death as well.

 

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