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The FBI Begins Probing Quadrigacx Exchange; Searches for User Data

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Quadrigacx

Several US entities have been probing Canada-based Quadrigacx exchange. The FBI is now the most recent body to start investigating the exchange. Quadrigacx recently crushed after losing more than $190 million of user funds. The probe aims to find what caused the exchange’s bankruptcy.

The FBI published a questionnaire for the victims. Through this questionnaire, the body seeks to find the user data of the exchange’s customers. Data collected includes personal identification details, contact, and account details.

In a press release published on June 3, the entity appealed to the exchange’s users seeking their help. It said,

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 FBI Has Been Probing Quadrigacx Since March

While the FBI has just unveiled that it is looking into the Canadian exchange, a publication notes that it started its investigations as early as March. Reportedly, the entity has been working with the Royal Canadian Mounted Police (RCMP) to resolve this issue.

Jesse Powell, Kraken exchange’s CEO noted that both agencies had contacted his firm while trying to crack open the Quadrigacx case. 

According to a report, other entities involved in the exchange’s investigation are,

  • Internal Revenue Service Criminal Investigation (IRS-CI)
  • The United States Attorney’s Office for the District of Columbia
  • The Department of Justice’s Computer Crime and Intellectual Property section

Quadrigacx’s Deceased Founder

Quadrigacx started experiencing problems after its founder, Gerald Cotton died in the past year. His death was a double loss for the exchange as he passed away without sharing the key to the exchange’s cold wallets.  As a result, the exchange lost $195 million worth of CAD tokens, which belonged to its clients.

Following this event, the crypto community had mixed reactions. Some individuals thought that the exchange’s executives had used Cotton’s death to exit the crypto space, taking user funds with them.

A Canadian court appointed Ernst and Young (EY) to keep tabs on the exchange. The court gave the audit firm the task of recovering all user funds. However, this activity failed to recover all lost funds. EY only got 103 BTC, which had been transferred to inaccessible cold wallets accidentally.

After this discovery, EY advised Quadrigacx to file for bankruptcy. Per the audit firm, the victimized creditors would get some reprieve after the exchange is rendered bankrupt.

Do you think the FBI will succeed in finding the missing links in the Quadrigacx case? Let us know in the comments below.

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