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Consulting firm investigating blockchain transactions in the QuadrigaCX case

September 8, 2020

The Canadian law firm that represents the creditors of the defunct crypto exchange, QuadrigaCX, hired consulting firm Kroll to advance its investigation into the loss of $ 190 million in user assets in early 2019.

As reported, the controversy has gripped QuadrigaCX after the death of its founder, Gerald Cotten, in December 2018 who purportedly the only person with access to the exchange’s cold wallet holdings.

In a notice to creditors on September 8th Miller Thomson said Kroll will work in collaboration with his strategic partner, Confirm withwho specializes in Blockchain Forensics and Anti-Money Laundering (AML) compliance.

Consulting firm investigating blockchain transactions in the QuadrigaCX caseConsulting firm investigating blockchain transactions in the QuadrigaCX case

Coinfirm is the developer of a blockchain analytics engine This is designed for crypto asset tracking, fraud investigation, data analysis and asset recovery.

According to the update from Miller Thomson Kroll and Confirm are tasked with analyzing a subset of transaction data. Given the sensitivity of these transactions and the continued involvement of law enforcement agencies, the announcement states that no further details of Kroll’s involvement will be publicly disclosed.

Kroll’s fees have been capped at $ 50,000 and the company has contracts of up to $ 150,000. Your commitment was jointly decided by Miller Thomson, QuadrigaCX’s bankruptcy auditor, and a designated official committee of affected users.

Miller Thomson’s update shows this as well has submitted information about the controversial payment processor Crypto Capital, Based in Panama that served QuadrigaCX before the stock market crash, to Quadriga’s superiors, serious.

“There is currently insufficient evidence that Crypto Capital owes Quadriga funds at the time of bankruptcy.”says Miller Thomson. However, should new information emerge on this subject, Ernst Young “Will Examine Recovery Opportunities for Quadriga Assets”.

Finally, the notice suggests that compensating creditors is likely to remain a lengthy process. “The most important influence on the distribution speed will be the CRA audit [Agencia de Ingresos de Canadá] Quadriga’s tax obligations “says Miller Thomson.

The rating agency has reportedly refused to confirm a schedule for its review to be completed due to disruption caused by the coronavirus pandemic.

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