Crypto

Canadian Bitcoin Exchange Report Shocking About Quadriga

The main finding of the Ontario Securities Commission (OSC) report published today includes shocking findings about the Canadian-based Bitcoin exchange Quadriga.

The Old Type of Fraud

bitcoin
Bitcoin

OSCAR is one of Canada’s provincial securities regulators, founder and CEO Gerald cottens of crypto currency exchange bankrupt a few months later after reportedly died in India “is an old-fashioned fraud equipped with modern technology,” he said.

The report, dated April 2020 and released to the public on Thursday, targeted Cotten’s practices, including allegations of trading with its own customers. According to the report, Cotten created fake accounts on other exchanges to trade using clients’ funds and was unable to keep records. These allegations were made in the past and were highlighted by auditors Ernst and Young (EY), who were appointed by the court in charge of retrieving customer funds after the stock market’s bankruptcy in February 2019.

The company has recovered nearly $ 46 million to date.

Emphasis on the Owner of the Stock Exchange

“The only person in control of these assets in 2016 was Cotten,” the report says.

Evidence shows that Cotten regularly removes customers’ crypto assets from the Quadriga platform and moves them to accounts opened on other crypto asset trading platforms.

In the OSC report, while missing customer funds close to $ 200 million are thought to have disappeared, he said that Cotten actually lost money through “fraudulent behavior” in the OSC report, as Cotten is the only one who controls the crypto wallets of the stock exchange.

The regulator found that the money lost through fraudulent behavior was about $ 169 million.

Cotten opened Quadriga accounts under pseudonyms, and undoubtedly manifested itself in the imaginary currency and crypto asset balances that Quadriga traded with customers. As the price of crypto assets changed, it sustained actual losses, thereby creating a deficiency in assets to satisfy customer attraction.
OSC met with ex-Quadriga contractors, consultants, customers, and widow Jennifer Robertson to gather the report.

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