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QuadrigaCX users filed claims for $ 300 million.

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QuadrigaCX fraud | He faked his death and disappeared with $215M

QuadrigaCX users filed claims for $ 300 million.

QuadrigaCX users filed claims for $ 300 million.
CONTENT

  • About 17,000 users became victims of the QuadrigaСХ exchange

  • Lawyers are confident that defrauded clients will not get their money back soon

  • The founder of the exchange led a luxurious life for the money of depositors

International consortium of news organizations developing transparency standards.

Users of the bankrupt crypto exchange QuadrigaCX filed lawsuits worth about $ 300 million. About 17,000 people accused the site of embezzlement of funds and demand to return the money back. Lawyers are confident that it will take several years before the victims receive compensation.

QuadrigaCX users filed claims for $ 300 million.

What to expect for deceived users

 

According to an official document, in 2019, 16,959 users of the infamous QuadrigaCX exchange filed claims in court. The applicants want to get back their funds invested in the exchange, and this is a total of over $ 300 million. It is known that QuadrigaCX clients purchased such cryptocurrencies as Bitcoin, BCH, BSV, BTG, ETH, Litecoin and others on the site. However, the exchange filed for bankruptcy after the sudden and mysterious death of its founder Gerald Cotten, who was the sole owner of the keys to the exchange’s wallets. After his death, experts were unable to gain access, but it turned out that most of the funds were spent on the personal needs of the founder. He led a gorgeous life and did not deny himself anything.

After the news of the bankruptcy of the exchange, Ernst was brought in to resolve the situation. & Young, who is currently collecting claims from affected clients. Initially, the audit company planned to collect claims until August 31 of last year, but since the final date for filing applications has not been approved, users are still sending their claims for damages.

QuadrigaCX users filed claims for $ 300 million.

As for the claims themselves, EY said the company has not yet completed verification of all the documents received. Some contain technical flaws, meaning they cannot be signed or contain minor errors. Other claims contain different readings than what Quadriga has listed in its database, the document says.

According to lawyer Evan Thomas, in fact, users can wait for years for the court to order a refund, so there is no need to hope for an early resolution of the situation..

What happened to QuadrigaCX

 

The QuadrigaCX exchange announced its bankruptcy in 2018 after the sudden death of its founder.

According to media reports, Gerald Cotten died suddenly during his honeymoon from an exacerbation of Crohn’s disease. This happened in Indian Jaipur. It is surprising that the death of the man became known a month later. Allegedly, an Indian hospital incorrectly indicated his name, so it was not immediately possible to identify Cotten..

All this time the exchanger was accepting money and working as usual. When it became known about the alleged death of Gerald Cotten, more than 76,000 users were unable to access their wallets, and money in the amount of $ 190 million was suspended on the resource. This was due to the fact that Cotten was the sole owner of the keys to the exchange’s wallets. He did not transfer information with the key code to anyone, and therefore no one could get access to the exchanger.

QuadrigaCX users filed claims for $ 300 million.

Later Ernst & Young revealed that after the death of the founder of QuadrigaСХ, money from the exchanger was withdrawn to other cryptocurrency wallets and to Cotten’s personal accounts. Who could do this if only Gerald himself had the access keys? The answer suggests itself. The law firm Miller Thomson, which was appointed by the Supreme Court of Nova Scotia as the legal representative of the group of clients of the crypto exchange QuadrigaCX, is demanding from the Canadian authorities to exhume the body of the suddenly deceased founder and head of the resource Gerald Cotten. During the examination, the company’s lawyers want to establish the identity of the deceased and find out the cause of death. According to experts, as well as most of the victims of the fraudulent actions of the crypto exchanger QuadrigaСХ, Cotten faked his own death.

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