FBI Starts Investigating into QuadrigaCX, Seeking Customers Data

Wednesday, 05/06/2019 | 06:24 GMT by Arnab Shome
  • Multiple criminal investigation agencies are now looking into the failed crypto exchange.
FBI Starts Investigating into QuadrigaCX, Seeking Customers Data
Bloomberg

As there is no obvious solution to the financial crisis of QuadrigaCX, multiple agencies in the United States, including the Federal Bureau of Investigation (FBI), have started to investigate the Exchange .

Other agencies involved in the investigation are the Internal Revenue Service Criminal Investigation (IRS-CI), the United States Attorney’s Office for the District of Columbia, and the Department of Justice’s Computer Crime and Intellectual Property Section.

The FBI is circulating a questionnaire to victims of the failed exchange to gather their personal information, including contacts and QuadrigaCX’s account information.

“If you have questions or concerns about your QuadrigaCX account, or if you believe you are a victim, please complete the below questionnaire. Your responses are voluntary but would be useful in the federal investigation and to identify you as a potential victim. Based on the responses provided, you may be contacted by the FBI and asked to provide additional information,” the June 3 press release stated.

Though the FBI only recently admitted its official involvement with the Canadian crypto exchange, according to Fortune, it initiated an investigation on the doomed exchange in March.

“The FBI and IRS-CI are legally mandated to identify victims of federal crimes that they investigate and provide these victims with information, assistance services, and resources,” the press release added.

The mishap of the deceased founder

The woes for QuadrigaCX started when its founder unexpectedly died without sharing the key of the exchange’s cold wallets. This locked down CAD 260 million ($195 million) worth of customer deposits in the exchange affecting around 115,000 clients.

A Canadian court appointed Ernst and Young (EY) as the monitor and the exchange with the responsibility to recover the lost funds. However, the audit firm failed to recover the total amount and only secured 103 Bitcoins that were accidentally transferred to an inaccessible wallet.

Meanwhile, the exchange also started bankruptcy proceedings in Canada.

As there is no obvious solution to the financial crisis of QuadrigaCX, multiple agencies in the United States, including the Federal Bureau of Investigation (FBI), have started to investigate the Exchange .

Other agencies involved in the investigation are the Internal Revenue Service Criminal Investigation (IRS-CI), the United States Attorney’s Office for the District of Columbia, and the Department of Justice’s Computer Crime and Intellectual Property Section.

The FBI is circulating a questionnaire to victims of the failed exchange to gather their personal information, including contacts and QuadrigaCX’s account information.

“If you have questions or concerns about your QuadrigaCX account, or if you believe you are a victim, please complete the below questionnaire. Your responses are voluntary but would be useful in the federal investigation and to identify you as a potential victim. Based on the responses provided, you may be contacted by the FBI and asked to provide additional information,” the June 3 press release stated.

Though the FBI only recently admitted its official involvement with the Canadian crypto exchange, according to Fortune, it initiated an investigation on the doomed exchange in March.

“The FBI and IRS-CI are legally mandated to identify victims of federal crimes that they investigate and provide these victims with information, assistance services, and resources,” the press release added.

The mishap of the deceased founder

The woes for QuadrigaCX started when its founder unexpectedly died without sharing the key of the exchange’s cold wallets. This locked down CAD 260 million ($195 million) worth of customer deposits in the exchange affecting around 115,000 clients.

A Canadian court appointed Ernst and Young (EY) as the monitor and the exchange with the responsibility to recover the lost funds. However, the audit firm failed to recover the total amount and only secured 103 Bitcoins that were accidentally transferred to an inaccessible wallet.

Meanwhile, the exchange also started bankruptcy proceedings in Canada.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6353 Articles
  • 80 Followers

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