QuadrigaCX: British Columbia’s Regulator Reportedly Didn’t Have Oversight Over the Exchange

Lloyd Doyle
February 10, 2019

In what is the latest twist in the ongoing QuadrigaCX saga, there is some more bad news for users of the Canadian exchange, as the British Colombia Securities Commission (BCSC) said on Thursday that the exchange does not fall under its purview, which means that users are not entitled to any kind of investigative or compensatory action by the regulator.

Exchanges where Quadriga CX had accounts, including Poloniex, Kraken and ShapeShift, were reportedly looking into the allegations.

Court documents attached to the will include a statement of death from the JA Snow Funeral Home in Halifax, dated December 12, which says Mr Cotten died in Jaipur on December 9. According to Cotton's widow Jennifer Robertson, Cotton did not write down the keys anywhere before he passed away, and she has no knowledge of the wallet passwords or security keys.

The company revealed that Cotten had unexpectedly died on December 9, 2018, of complications arising from Crohn's Disease while he was traveling in India.

It encourages Canadians to be more cautious when it comes to investing in crypto assets in trading platforms.

Cotten's death has now left QuadrigaCX with the task of figuring out a way to refund the money of scores of cryptocurrency holders and on Tuesday, February 5, it said that it had been granted creditor protection in the Nova Scotia Supreme Court. The alert said a platform may call itself an "exchange", but it may not be selling or trading securities or derivatives and, if such is the case, it will generally not be subject to regulation under securities or derivatives laws.

One of the top Reddit threads within the QuadrigaCX community is about whether somebody is "interested in getting someone on the ground in India to investigate Gerry's death".

According to documents availed by the hospital, Cotten was admitted to the healthcare facility on December 8.

The young Canadian man was already close to death when he was admitted to a hospital in the Indian city of Jaipur in early December. After a series of cardiac arrests he was declared dead the following evening, his wife at his side.

They said he had complained of watery stools, vomiting, crampy abdominal pain, and was feeling feverish. He was also feeling feverish when he came to the hospital, sources said. Doctors diagnosed "septic shock, perforation, peritonitis, intestinal obstruction" upon admission.

Despite the best efforts of the hospital, it is not certain that this will quell speculation regarding the Canadian crypto exchange.

Edwards said he found no evidence of Quadriga controlling any cold storage wallets that held the large amounts the company claims. The bank purportedly froze the accounts due to an inability to identify the funds' owners.

Other reports by Iphone Fresh

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