The FBI Looking For Victims Of  QuadrigaCX As Multiple Agencies Investigate Collapsed Exchange


Now-defunct crypto exchange QuadrigaCX is the subject of multiple investigations by a number of U.S. investigative agencies.

The multiple probes are focused on the circumstances of the Canadian cryptocurrency exchange that filed for bankruptcy in April and has been undergoing a civil rehabilitation process since February.

A press release published on Monday, June 3 stated that the FBI was looking for victims of the collapsed exchange.

Other agencies on the hunt for information on the exchange include the Internal Revenue Service’s Criminal Investigation Division (IRS-CI), the Department of Justice’s Computer Crime and Intellectual Property Section and the U.S. Attorney General’s office for the District of Columbia.

The press release addresses both those victims who have concerns or questions about their accounts on the collapsed exchange, or those who believe they are victims.

In its questionnaire for Quadriga victims, the FBI seeks for personally identifying information, user contact details, and QuadrigaCX account details.

The statement adds:

“Your responses are voluntary but would be useful in the federal investigation and to identify you as a potential victim.”

The agency noted that it will contact some of the victims for more information depending on the responses the respondents give.

Both the FBI and IRS-CI have the legal responsibility of ensuring they provide people deemed to be victims of federal crimes all the assistance and information they need, including access to other relevant resources.

The FBI has reportedly investigated the Quadriga platform since March, working alongside Canadian police.

Trouble for Quadriga surfaced after the sudden death of its founder and CEO Gerald Cotton in December 2018. The exchange then filed for creditor protection as it tried to locate the keys to the platform’s cold storage that held nearly $190 million belonging to about 115,000 users.

Big Four auditor Ernst and Young (EY) was appointed monitor later February.

EY has reported that it cannot trace any of the crypto holdings that were allegedly stored in cold wallets. According to the monitor, there are only 103 BTC that the monitor said were inadvertently moved to an inaccessible wallet.

EY noted in a report last month that Quadriga’s assets are worth roughly $21 million, including recovered fiat currencies. The exchange, however, owes customers close to $160 million.

Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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