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Title: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on February 06, 2019, 04:14:08 AM Does everyone remember the story of QuadrigaCX's founder, who was claimed to be the only person in control of the exchange's cold wallet, died in India on December, 2018? There are new stories surfacing that the people left running the exchange are using the founder's death to exit scam.
We might begin witnessing more small exchanges doing exit scams if the bear market extends out longer. Also, do not trade in small and unknown exchanges. https://3xz7gj47vd1t2zgr1q19hmwl-wpengine.netdna-ssl.com/wp-content/uploads/2018/11/scam.jpeg Quadriga's motto The Canadian exchange claims it has lost access to $145 million of digital assets due to its founder’s death, however, it is likely that QuadrigaCX never had this money. QuadrigaCX, the largest Canadian cryptocurrency exchange in terms of trade volume, has recently grabbed the headlines due to its controversial insolvency. It filed for creditor protection after the sudden death of the company’s founder and CEO Gerald Cotten, which had led to the liquidity crisis. The explanation for this was rather extraordinary. It turned out that Cotten was the only person who controlled all private keys to the cold storage wallets where QuadrigaCX used to hold almost all of its funds. As a result, QuadrigaCX had to confess it failed to locate or access about $145 million in various digital assets. At first, humanity prevailed. After all, Cotten was only 30 years old, and he went to India with a charitable goal to open an orphanage where he died. Meanwhile, his widow has been reportedly receiving threats from the clients of the exchange, who are furious and learning a tough lesson of the golden cryptocurrency rule, ‘not your keys, not your coins.’ Notably, Jesse Powell, the head of the Kraken exchange, which is one of the largest and most influential exchanges, also shares these views. In his latest post on Twitter, he touched on issues of witnesses, identity verification, and credibility of a death certificate. He is ready to share some insider information with Canadian authorities if the need arises. Besides the above-mentioned $145 million in digital assets, the exchange also owes its users more than $50 million in fiat currency, according to the court filing. The fiat issues started because of a legal dispute between QuadrigaCX and the Canadian Imperial Bank of Commerce (CIBC), which last year froze multi-million accounts linked to Costodian Inc., one of Quadriga’s payment processors. There were also problems with Billerfy and WB21, two more payment processors working with Quadriga and are holding part of its funds. In this regard, Powell claimed the entire case looked very much like an exit scam. He cites the suspicious combination of recent developments, including sudden disappearance of the founder after fiat problems and high withdrawals. To make things worse, a respected crypto industry researcher, Crypto Medication, published a comprehensive blockchain analysis of Quadriga’s addresses and transactions. Based on its findings, the experts concluded that QuadrigaCX did not have as much Bitcoin as it claimed on the affidavit which it submitted to the Canadian court. Even worse, the researchers revealed that the exchange had no identifiable cold wallet reserves. Instead, it used one client’s deposits to fund another client’s withdrawals. This explains the occasional delays in withdrawal execution, as sometimes QuadrigaCX did not have enough liquid funds at its disposal. Read in full https://beincrypto.com/quadrigacx-saga-human-tragedy-or-yet-another-exit-scam/ Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: figmentofmyass on February 06, 2019, 05:07:37 AM Does everyone remember the story of QuadrigaCX's founder, who was claimed to be the only person in control of the exchange's cold wallet, died in India on December, 2018? There are new stories surfacing that the people left running the exchange are using the founder's death to exit scam. We might begin witnessing more small exchanges doing exit scams if the bear market extends out longer. Also, do not trade in small and unknown exchanges. this is a really important point many folks don't realize. when the bull market is raging, exchanges---even fractional reserve ones---can keep riding the gravy train. it's during the bear market that we see who's been swimming naked, so to speak. i've been quietly expecting some events like cryptopia and quadriga to unfold for a while now, particularly after the crash from $6k. this is the most brutal part of the bear cycle. volumes and revenues are dead, hype is long gone, overheads are bleeding businesses dry. all of a sudden, getting "hacked" and closing up shop starts to look a lot more tempting. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: blockman on February 06, 2019, 05:56:35 AM I'm not familiar with QuadrigaCX until it was on the news with some bad exposee that the owner was totally dead. I don't have 100% source that the owner is totally dead. I have read some comments that it truly might be an exit scam and they haven't shown an actual proof that guy was caught dead. I hope that this case wouldn't be the same as Mt.Gox. It's a lot of money that they have locked and why on Earth they didn't used multisig wallet?
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: elda34b on February 06, 2019, 06:31:15 AM why on Earth they didn't used multisig wallet? There are a lot of stories, one of them said that Quadriga did in fact used a multisig wallet. But it doesn't matter if they don't have the money in the first place. Lots of people are starting to do their own chain analysis to find out where exactly does Quadriga store their money. Everything related to Cryptocapital sounds very shady now. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: figmentofmyass on February 06, 2019, 06:41:22 AM why on Earth they didn't used multisig wallet? There are a lot of stories, one of them said that Quadriga did in fact used a multisig wallet. But it doesn't matter if they don't have the money in the first place. Lots of people are starting to do their own chain analysis to find out where exactly does Quadriga store their money. Everything related to Cryptocapital sounds very shady now. cryptocapital is shady. like bitfinex, they bank like criminals and organize themselves offshore under a cloak of anonymity. i don't think they're shady because of their association with quadriga though. they're just a payment processor/bank who works with lots of crypto exchanges. although maybe youre right that it does raise questions about cryptocapital's due diligence on their clients. they're known for working with smaller and less compliance-minded exchanges. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: davis196 on February 06, 2019, 06:59:29 AM If this is really an exit scam,I'm pretty sure that the QuadrigaCX's coins will be sold,or atleast moved to some other wallets.Perhaps there is a way to track those transactions.
"Using one client's deposits to fund other client's withdrawals" looks like a clissical ponzi scheme. Other small crypto exchanges are going the same scam,and they will burst soon. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: o_e_l_e_o on February 06, 2019, 07:45:30 AM There are new stories surfacing that the people left running the exchange are using the founder's death to exit scam. I think it is more likely the founder has faked his death, and it is him that is still in control of the exchange's addresses.If this is really an exit scam,I'm pretty sure that the QuadrigaCX's coins will be sold,or atleast moved to some other wallets. Remember that Quadriga required all its customers to go through KYC procedures. Given that this looks like it has been going for months, with no cold wallets in existence and the owner just constantly skimming funds off for himself, it was quite possibly he has used some of these KYC documents to open accounts at other exchanges under other people's names and use them to cash out all the stolen coins. Doubly concerning for anyone who has lost their money on the exchange.Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bustedsynx on February 06, 2019, 07:55:52 AM LMAO. With the exchange founder's sudden death, it couldn't have been a more perfect excuse to exit scam. Maybe they were already having liquidity problems and see the death as a perfect excuse. Like come on, who doesn't store backups for millions of dollars.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Kemarit on February 06, 2019, 10:39:15 AM LMAO. With the exchange founder's sudden death, it couldn't have been a more perfect excuse to exit scam. Maybe they were already having liquidity problems and see the death as a perfect excuse. Like come on, who doesn't store backups for millions of dollars. LMAO, this is turning like a circus act and as the story deepens, more and more information surfaces that may lead that indeed this was a exit scam pulled out by the founder of the company. Yeah, liquidity problems but he don't want to get busted, so he carefully plot something and come up with a perfect excuse - death, LOL. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: buwaytress on February 06, 2019, 10:54:57 AM On the point of not using smaller exchanges - that's a matter of preference. I actually thought guys like Quadriga and Cryptopia ought to be applauded for trying to go neck to neck with the big guns. Don't for a moment believe that it's only the big guys who practise good security (you remember Mt Gox of course). If anything, a smaller group of people with enough technical knowledge and commitment to do good, will be the ones practising proper security measures.
On the note of exit scam, I won't dismiss it. Death in December and only outed now? And an exchange only leaving everything in the hands of a CEO? Surely this can't be how even the most unprofessional firms operate? Totally agree with figmentofmyass: exit scamming looking so, so tempting. Especially when there aren't repercussions. Now if the exchange were insured, like all Japanese licenced ones are... we're seeing a first use case for insured exchanges. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: aoluain on February 06, 2019, 11:47:35 AM I read this story yesterday and TBH I'm not surprised, this exchange
isn't the first and certainly wont be the last. As a lot of people have pulled out of crypto, particularly newbies who god burned last year there are a lot of exchanges trying to service a substantially reduced amount of business and some have to be hurting like o_e_l_e_o states above. Insuring and licencing exchanges does give more user protection but we also need to recognise that we are trusting others with our funds and certain degrees of regulation can actually help. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Slow death on February 06, 2019, 12:11:49 PM [...] This is a story that poses another great challenge to the crypto world: - how can the exchange users protect themselves in the event that the exchanges owners die? Quote from: https://cointelegraph.com/news/ceo-of-canadian-crypto-exchange-quadrigacx-filed-will-12-days-before-death Gerald Cotten, the recently deceased CEO of major Canadian crypto exchange QuadrigaCX, had filed a will 12 days before his death, Bloomberg writes Tuesday, Feb. 5. According to the documents obtained by Bloomberg, Cotten signed his last will and testament on Nov. 27, 2018. He mentioned his wife, Jennifer Robertson, as the only beneficiary and the executor to his estate. Bloomberg has learned that Robertson will inherit several properties in Nova Scotia, where the couple lived, and in Kelowna, British Columbia, as well as a Lexus, a Jeanneau 51 yacht, an airplane and his two pet chihuahuas. CEO of Canadian Crypto Exchange QuadrigaCX Filed Will 12 Days Before Death (https://cointelegraph.com/news/ceo-of-canadian-crypto-exchange-quadrigacx-filed-will-12-days-before-death) if he did, then he knew he was going to die, so why did not he also take steps to ensure that his clients would not be harmed by his death? Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Japinat on February 06, 2019, 01:01:19 PM I'm not familiar with QuadrigaCX until it was on the news with some bad exposee that the owner was totally dead. Me either, because it's not popular in the forum, most people are using the top volume exchanges.I don't have 100% source that the owner is totally dead. I have read some comments that it truly might be an exit scam and they haven't shown an actual proof that guy was caught dead. It should be a big explaining to do by the team if the founder is not really dead. And I don't think they will risk themselves covering this possible crime and face jail time in the future, and when the address can be identified, I think anyone can monitor that and if there's any movement, it could make them liable. I hope that this case wouldn't be the same as Mt.Gox. It's a lot of money that they have locked and why on Earth they didn't used multisig wallet? Now, it's not a lot compared to the past scams as this market had experience some significant growth. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: 1Referee on February 06, 2019, 02:44:57 PM Now if the exchange were insured, like all Japanese licenced ones are... we're seeing a first use case for insured exchanges. I honestly wouldn't put much thought or hope into that, because insurers are out to do one specific thing, which is making sure that they don't have to cough up any sort of amount, or in the worst case scenario, an amount that's far below that what exchanges are insured for. We're not talking about a couple of thousand dollars here, but dozens of millions, and in some cases even hundreds of millions. With how one exchange goes bust after the other, I'm not sure how willing insurers are to dig deep into their pockets. I hope that we're not going to see another hack/scam, but if history repeats, and I strongly believe it will repeat, we'll see how these insured exchanges will respond to that situation. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Betwrong on February 06, 2019, 05:04:23 PM ~ CEO of Canadian Crypto Exchange QuadrigaCX Filed Will 12 Days Before Death (https://cointelegraph.com/news/ceo-of-canadian-crypto-exchange-quadrigacx-filed-will-12-days-before-death) if he did, then he knew he was going to die, so why did not he also take steps to ensure that his clients would not be harmed by his death? Those were my thoughts too when I was reading the article on Bloomberg. It indeed looks like suspicious behavior. Regarding whether he actually died or not, of course we can't be 100% sure, but here's what is said in the Jennifer Robertson Affidavit uploaded by Coindesk to scribd: https://i.imgur.com/Bcvu834.png Source: https://www.scribd.com/document/398721572/Jennifer-Robertson-Affidavit After researching a bit more I found the Death Certificate shown on various news sites: https://i.imgur.com/FwqQyxX.png I think people from India can enlighten us on whether it's easy or not to fake such things in the country. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: pixie85 on February 06, 2019, 05:52:54 PM Regarding whether he actually died or not, of course we can't be 100% sure, but here's what is said in the Jennifer Robertson Affidavit uploaded by Coindesk to scribd: She's obviously lying. If he really submitted his will a week before his actual death there's high probability they were talking about death with his wife and that he told her about private keys. I think they are blaming it on the dead man because it can't hurt him in his grave and taking all the money. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: gentlemand on February 06, 2019, 06:14:42 PM I think people from India can enlighten us on whether it's easy or not to fake such things in the country. Many Indians are broke. Fat Westerners are not. India is one of the most corrupt countries in the world. One study said 92% of Indians have had bribes demanded at some point from public servants. If he'd carked it in Switzerland it would be rather more convincing. https://timesofindia.indiatimes.com/Want-a-fake-death-certificate/articleshow/3218280.cms Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: o_e_l_e_o on February 06, 2019, 10:27:22 PM The registration of his death appears on the Indian Governments official website, so we can say at least that the certificate is not photoshopped or similar. As gentlemand pointed out though, India is overrun with corruption, and it would not be that difficult to pay off a hospital employee or two to fill in the paperwork and register a death that never happened.
Very suspicious that his last name is spelt wrong on the death certificate. "Cottan" instead of "Cotten". Maybe suggests it was done without him ever registering at the hospital as a patient, which would have resulted in his ID being checked, and instead has been done verbally? Regardless, if this is the death certificate they are using, then legally speaking, Gerald Cotten is not dead. Someone called Gerald Cottan is. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: blockman on February 07, 2019, 04:09:40 AM why on Earth they didn't used multisig wallet? There are a lot of stories, one of them said that Quadriga did in fact used a multisig wallet. But it doesn't matter if they don't have the money in the first place. Lots of people are starting to do their own chain analysis to find out where exactly does Quadriga store their money. Everything related to Cryptocapital sounds very shady now. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on February 07, 2019, 04:11:00 AM ~ CEO of Canadian Crypto Exchange QuadrigaCX Filed Will 12 Days Before Death (https://cointelegraph.com/news/ceo-of-canadian-crypto-exchange-quadrigacx-filed-will-12-days-before-death) if he did, then he knew he was going to die, so why did not he also take steps to ensure that his clients would not be harmed by his death? Those were my thoughts too when I was reading the article on Bloomberg. It indeed looks like suspicious behavior. Regarding whether he actually died or not, of course we can't be 100% sure, but here's what is said in the Jennifer Robertson Affidavit uploaded by Coindesk to scribd: https://i.imgur.com/Bcvu834.png Source: https://www.scribd.com/document/398721572/Jennifer-Robertson-Affidavit After researching a bit more I found the Death Certificate shown on various news sites: https://i.imgur.com/FwqQyxX.png I think people from India can enlighten us on whether it's easy or not to fake such things in the country. I reckon it might be. Also may he rest in peace. However, how very convenient for Gerald Cotten of dying in a region very well known for having a fake death mafia if this was proven not to be an exit scam. https://www.newsbtc.com/2019/02/06/ceo-who-held-150m-in-crypto-died-in-a-region-known-for-having-a-fake-death-mafia/ Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: rdbase on February 07, 2019, 04:14:51 AM There are two threads about it since it was announced late last month about the possibility of an exit scam by the exchange.
https://bitcointalk.org/index.php?topic=5105266 & https://bitcointalk.org/index.php?topic=984498.0 Where there is a video I posted that uncovers even more about a second person who might be the one who is behind it or even Cottons death. There is a theory he ran another exchange called Midas gold back in 2008 with a guy by the name of Omar Dhalini. I think they planned this setup and exit all along. Could be Gerald was the fall guy and Omar is the one who has control of the funds by multi-sig wallets. And is just waiting until the heat is off the bitcoin but is moving small amounts of litecoin as others have followed those transactions. This theory is explained in this video by coinspice. https://www.youtube.com/watch?v=tiy1K6-mf4s From details already uncovered the original story is becoming less believable everyday. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: figmentofmyass on February 07, 2019, 05:54:39 AM Now if the exchange were insured, like all Japanese licenced ones are... we're seeing a first use case for insured exchanges. I honestly wouldn't put much thought or hope into that, because insurers are out to do one specific thing, which is making sure that they don't have to cough up any sort of amount, or in the worst case scenario, an amount that's far below that what exchanges are insured for. they'll pay out according to their executed agreements or they'll fight it out in court. insurance companies don't like costly legal battles any more than paying out claims. there's no reason to assume that insurance will work much differently than for any other industry. the risk due to irreversibility of thefts should be priced in accordingly, meaning steep premiums. i think we're already seeing the effect of that: coinbase only insures 2% or less of their crypto---whatever is in their hot wallets. https://www.coinbase.com/legal/insurance?locale=en-US Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: 24Kt on February 12, 2019, 09:32:52 PM There are two threads about it since it was announced late last month about the possibility of an exit scam by the exchange. https://bitcointalk.org/index.php?topic=5105266 & https://bitcointalk.org/index.php?topic=984498.0 Where there is a video I posted that uncovers even more about a second person who might be the one who is behind it or even Cottons death. There is a theory he ran another exchange called Midas gold back in 2008 with a guy by the name of Omar Dhalini. I think they planned this setup and exit all along. Could be Gerald was the fall guy and Omar is the one who has control of the funds by multi-sig wallets. And is just waiting until the heat is off the bitcoin but is moving small amounts of litecoin as others have followed those transactions. This theory is explained in this video by coinspice. https://www.youtube.com/watch?v=tiy1K6-mf4s From details already uncovered the original story is becoming less believable everyday. Sorry if he's really dead. But what I'm seeing here is a clear exit scam. A legit company will not authorize only one person to hold vital info and passwords. There are others who are responsible on this matter. Just my 2 cents. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: o_e_l_e_o on February 12, 2019, 09:40:17 PM A legit company will not authorize only one person to hold vital info and passwords. He was the sole owner of the company, and everyone else who worked for it was his employer. As it is a private company 100% under his control, he can do whatever he wants with it. If he wants to hold all the logins, passwords, funds, private keys, and whatever else himself with no back ups, then he can. Is it stupid? Absolutely, but that doesn't stop him from doing it. I wouldn't be surprised if there are other exchanges out there with similarly stupid set ups for holding their users' funds.Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: pacman7331 on February 13, 2019, 10:59:11 PM Does everyone remember the story of QuadrigaCX's founder, who was claimed to be the only person in control of the exchange's cold wallet, died in India on December, 2018? There are new stories surfacing that the people left running the exchange are using the founder's death to exit scam. We might begin witnessing more small exchanges doing exit scams if the bear market extends out longer. Also, do not trade in small and unknown exchanges. Read in full https://beincrypto.com/quadrigacx-saga-human-tragedy-or-yet-another-exit-scam/ People should follow this, I don't know why people go for every exchange! Last year, we have seen many exchanges ICO came up and then they vanish. I haven't found any new exchange doing well this year. Even Forkdelta, Etherdelta is better than a new good looking exchange! Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on February 14, 2019, 03:42:15 AM A legit company will not authorize only one person to hold vital info and passwords. He was the sole owner of the company, and everyone else who worked for it was his employer. As it is a private company 100% under his control, he can do whatever he wants with it. If he wants to hold all the logins, passwords, funds, private keys, and whatever else himself with no back ups, then he can. Is it stupid? Absolutely, but that doesn't stop him from doing it. I wouldn't be surprised if there are other exchanges out there with similarly stupid set ups for holding their users' funds.That might be what the people behind the exit scam want. That we think they are stupid for having such a set up. It would be more stupid to accept it and let them get away with it without an investigation, I reckon. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 05, 2019, 02:31:42 AM News update. I reckon QuadrigaCX did not do an exit scam, however, it was a scam or it was running a scam hehehe. It appears that from the reported updates, QuadrigaCX never stored all of the users' coins in the exchange but used other exchanges to store the coins.
It was not clear why, however this appears to be part of another money laundering scheme or a basic scam. https://3mgj4y44nc15fnv8d303d8zb-wpengine.netdna-ssl.com/wp-content/uploads/2019/02/Canadas-QuadrigaCX-Connected-to-Suspicious-Scam-Firm-696x449.png QuadrigaCX, the Canadian cryptocurrency exchange that purportedly lost $250 million CAD ($190 million USD) of customer funds when the company’s CEO died, was appointed the professional services firm Ernst & Young (EY) as their monitor by court order on February 5, 2019. The Big Four auditing firm has since released 3 reports in the creditor protection proceedings of QuadrigaCX. The third report was released on March 1, in which the firm identified 6 crypto Quadriga wallets primarily used to store Bitcoin (BTC). What’s interesting is that out of the 6 wallets identified, all but 1 received no deposits and were inactive since April 2018. There was only 1 wallet that had an inadvertent Bitcoin transaction of nearly $500,000. The third Ernst & Young report states: “To date, the Applicants have been unable to identify a reason why Quadriga may have stopped using the Identified Bitcoin Cold Wallets for deposits in April 2018, however, the Monitor and Management will continue to review the Quadriga database to obtain further information.” Source https://www.investinblockchain.com/quadriga-update-wallet-empty-unused-since-april-2018-ernst-young/ Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: nutildah on March 10, 2019, 06:56:50 AM This story gets juicier by the day.
Now it looks like they had created "fictitious" accounts to trade against customers funds, for the sake of pumping volume, as well as having a reason to move BTC to non-exchange related addresses. They also had their own unbacked CAD version of Tether, called "QuadBucks." From reddit (https://www.reddit.com/r/QuadrigaCX/comments/ayj0dd/quadrigacx_traded_against_its_own_users/): Here's what they were doing: Customer deposits BTC; Quadriga "artificially" creates a deposit of imaginary "Quadbucks" to their fake trading accounts; Quadriga buys the customer BTC and shows in the customer account that they have Quadbucks; Customer can't withdraw cash until actual customers deposit actual cash (because the "cash" that bought their BTC never existed); Quadriga sends the BTC they bought with imaginary Quadbucks to personal addresses. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Baofeng on March 10, 2019, 07:33:24 AM I'm totally done with this QuadrigaCX issues/scams. I was one of those who open up a thread as pointed out by rdbase earlier and I still hold my opinion that the money is all gone and all those wallet are fictitious. And now it gets more juicier with what @nutildah, has posted and I'm sure that there's no way that account holders can get their funds, sorry to say.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: susila_bai on March 10, 2019, 09:16:14 AM In India it is very easy to fake the documents or even fake the death news and create a real death Certificate. so that is why he came to India to do this exit scam. Why did he has to come to India when their is clear that cryptocurrency is not legal to use in India.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: coolcoinz on March 10, 2019, 12:55:21 PM It looks like they were emptying addresses before the owner "died". I read somewhere that they finished analysing the addresses and there were large withdrawals prior to his death, and that whole story about them not having private keys and funds still being on addresses is false.
Also, there's that thing with his wife taking money from the exchange after his death... It's obvious that this guy is hiding somewhere or maybe his wife emptied the addresses and hired some goons to take care of him in India. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: o_e_l_e_o on March 10, 2019, 01:13:56 PM It looks like they were emptying addresses before the owner "died". 8 months before he died, many of the so called "cold wallets" were emptied. This has been in the works for a long time, which is why they've managed to make off with such a large sum of money.Quadriga sends the BTC they bought with imaginary Quadbucks to personal addresses. There's plenty of evidence that they were withdrawing customers' coins to deposit addresses on other exchanges, so they were clearly cashing out significant amounts of BTC they didn't own and converting it to fiat. Given that this went undetected for so long, I wouldn't be in the least bit surprised if it turned out they had been using Quadriga customers' KYC documents to fraudulently open accounts at other exchanges other their customers' names.Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: stomachgrowls on March 10, 2019, 02:21:59 PM In India it is very easy to fake the documents or even fake the death news and create a real death Certificate. so that is why he came to India to do this exit scam. Why did he has to come to India when their is clear that cryptocurrency is not legal to use in India. They do make things to be well arranged without even knowing that people can figure it out on what they are doing.They already know about India when it comes to fake events ;DLots of questions but we can already presume on his motive. Quadriga sends the BTC they bought with imaginary Quadbucks to personal addresses. There's plenty of evidence that they were withdrawing customers' coins to deposit addresses on other exchanges, so they were clearly cashing out significant amounts of BTC they didn't own and converting it to fiat. Given that this went undetected for so long, I wouldn't be in the least bit surprised if it turned out they had been using Quadriga customers' KYC documents to fraudulently open accounts at other exchanges other their customers' names.There are already lots of obvious modus but this case has still no end or conclusion. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: veleten on March 10, 2019, 10:13:31 PM I won't be surprised if it is
where big money involved it is very easy to get seduced and plot something like that the owner could be dead alright and he , probably is but it I don't believe he hasn't planned a force majeur like this and hadn't prepared a backup maybe the group of people who learnead about it could have killed him and orchestrated the whole scam guess we will find out sooner rather than later Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 14, 2019, 01:52:15 AM Another news update. Rest in peace Gerald Cotten, however this might be disrespectful of me to say. Quadriga is beginning to appear more like a small player in a bigger money laundering ring. I have said this before, however I believe it more now.
I reckon Gerald might not be trying to save the exchange's customers because he cared. He was personally laundering money using his personal account. Gerald Cotten, the deceased founder and CEO of crypto exchange QuadrigaCX, used his own cash to make customers whole during a legal battle with a bank, his widow said. Jennifer Robertson, Cotten’s wife and executor of his estate, said in a statement sent to CoinDesk Wednesday that Cotten told her he was putting his own funds into the exchange after the Canadian Imperial Bank of Commerce (CIBC) froze its fiat holdings in 2018 over questions about their origin. In the statement sent by law firm Stewart McKelvey, she said: “While I had no direct knowledge of how Gerry operated the business, he told me that he had been putting his own money back into QCX to fund user withdrawals in 2018 while the CIBC money remained frozen. I believe Gerry had the best interests of the business in mind, and cared for his customers.” https://www.coindesk.com/stewart-mckelvey-quadriga-law-firm Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Johnzky on March 14, 2019, 07:12:24 AM . This is great advice specially to newbies and to the noobs whos seeking for something with cheaper fees,because most of the smaller exchangers that appears now are here to scam or even hacks us,so be careful in each exchanges we will engaging and better use those stable one even with high fees atleast you are secured and saferAlso, do not trade in small and unknown exchanges. . Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: figmentofmyass on March 14, 2019, 07:44:08 AM Another news update. Rest in peace Gerald Cotten, however this might be disrespectful of me to say. Quadriga is beginning to appear more like a small player in a bigger money laundering ring. I have said this before, however I believe it more now. I reckon Gerald might not be trying to save the exchange's customers because he cared. He was personally laundering money using his personal account. Jennifer Robertson, Cotten’s wife and executor of his estate, said in a statement sent to CoinDesk Wednesday that Cotten told her he was putting his own funds into the exchange after the Canadian Imperial Bank of Commerce (CIBC) froze its fiat holdings in 2018 over questions about their origin. In the statement sent by law firm Stewart McKelvey, she said: “While I had no direct knowledge of how Gerry operated the business, he told me that he had been putting his own money back into QCX to fund user withdrawals in 2018 while the CIBC money remained frozen. I believe Gerry had the best interests of the business in mind, and cared for his customers.”[/i] it may have nothing to do with a bigger money laundering ring. he/they were apparently spreading thousands of BTC around to other exchanges---probably to buy/sell what they needed ($$ and altcoins) to cover customer withdrawals. maybe they got some bank accounts frozen because they were trying to move huge amounts of money in from foreign exchanges instead of transacting like a normal exchange would. with frozen fiat accounts (not to mention they were already slow-paying crypto depositors) it looks like cotten was just desperately trying to keep the exchange afloat. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 15, 2019, 01:09:06 AM @figmentofmyass. The frozen bank accounts might be because there was a suspicion of money laundering. However, instead of shutting down,or exit scamming, Gerald Cotten continued to deposit money to the exchange out of the goodness of his heart? I reckon he was using his personal accounts to launder money.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: figmentofmyass on March 15, 2019, 03:28:31 AM @figmentofmyass. The frozen bank accounts might be because there was a suspicion of money laundering. However, instead of shutting down,or exit scamming, Gerald Cotten continued to deposit money to the exchange out of the goodness of his heart? I reckon he was using his personal accounts to launder money. not out of the goodness of his heart IMO but out of self preservation. if the ponzi imploded like mt gox, he probably would have gone straight to prison for fraud, embezzlement, record tampering etc. so if there was no liquidity for customer withdrawals, he had two choices: come clean and face prison, or put in his own $$ in hopes that the CIBC funds would eventually be recovered. i guess he chose the latter and tried to keep the exchange afloat. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 16, 2019, 01:15:40 AM However, why was QuadrigaCX sending 600k ethereum from cold storage to different exchanges? Why do that? I reckon this has already occured before the banks have frozen their accounts.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: figmentofmyass on March 16, 2019, 10:24:19 AM However, why was QuadrigaCX sending 600k ethereum from cold storage to different exchanges? Why do that? I reckon this has already occured before the banks have frozen their accounts. let's assume they were insolvent. in this situation, their entire operation depends on the inflow of crypto deposits. if they needed to cover USD or CAD or LTC withdrawals and didn't have the funds available, they could send BTC or ETH etc to kraken or binance, sell it and send back the proceeds to process customer withdrawals. if customer withdrawals were shut down entirely, the jig would be up pretty quickly. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 18, 2019, 01:08:40 AM That might be correct. It is also possible that the bitcoin news media has been releasing clickbaits after clickbaits for our entertainment and their own interests hehe.
However, I still reckon that there might be more to the story. There is always more behind every story in the cryptospace hehehe. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: dreamhouse on March 19, 2019, 04:07:42 AM scary on what is going on, waiting for more information on it. In anyway the bitcoin fund management there seems suspicious.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 20, 2019, 03:26:33 AM News update.
@figmentofmyass. QuadrigaCX appears more revealed to be the moneylaundering part of a criminal operation as more details are being uncovered about this story hehehe. https://news.bitcoin.com/wp-content/uploads/2019/03/2019-03-19-22-33-50.jpg Omar Dhanani Quadrigacx Co-Founder Michael Patryn Is Actually Convicted Fraudster Omar Dhanani While Dhanani, now known as Patryn, refused to comment on the matter, Bloomberg claims to have obtained records that confirm the man’s criminal past and his changing of names twice, in 2003 and 2008. Patryn co-founded troubled Canadian exchange Quadrigacx with the late Gerald Cotten in 2013. Quadrigacx Co-Founder Michael Patryn Is Actually Convicted Fraudster Omar Dhanani Omar Dhanani a.k.a Michael Patryn He allegedly changed his name from Omar Dhanani to Omar Patryn with the British Columbia government in March 2003. The news agency reported that in 2008, Dhanani became known as Michael Patryn, having registered a new name in the same Canadian province. In the U.S., Dhanani had been charged with several crimes, including pleading guilty to conspiracy to commit credit and bank card fraud in 2005, Bloomberg noted, quoting a statement from the U.S. Justice Department. He was just 22 years old at the time. Dhanani allegedly operated a website called shadowcrew.com, now defunct, peddling 1.5 million stolen credit and bank card numbers, claims the article. Read in full https://news.bitcoin.com/quadrigacx-co-founder-michael-patryn-is-actually-convicted-fraudster-omar-dhanani/ Also, this is a clearer written article about the whole story. https://www.crypto-news.net/quadriga-mystery-deepens-as-auditors-discover-cold-wallets-to-be-empty/ Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 29, 2019, 03:33:07 AM Another news update.
Whatever QuadrigaCX was, it is becoming clearer after every news update that it was not functioning only as an exchange. It was also something else. If it is proven true for QuadrigaCX, we can assume that it might be true for many of the other exchanges. http:// In a recent article published on CoinDesk, Christine Duhaime – a regulatory attorney in Canada who was hired by the exchange for a short period of time in 2015 – explained that Cotten was guiding his exchange down a precarious path long before his death. Duhaime noted that her time at the company came to an abrupt end shortly after Cotten decided that he no longer wanted the exchange to be a listed company, which was directly proceeded by him firing all the employees that were, in his mind, “law and order” people. “Gerald Cotten made the decision that he no longer wanted QuadrigaCX to be a listed company. On that day, he terminated the professionals that were, in his mind, the ‘law and order’ folks – the accountant, the auditor and me, the regulatory attorney,” she explained. Furthermore, after this occurred, Duhaime explains that Cotten began running the exchange as if it has “no investors, no shareholders, no regulatory agencies and no law that applied to it – no corporate law, no securities law, no anti-money-laundering law and no contract law.” Read in full https://www.newsbtc.com/2019/03/28/former-quadrigacx-attorney-claims-crypto-exchange-was-sent-down-path-of-lawlessness/ Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: joniboini on March 29, 2019, 04:49:49 AM Wow, what a shock. Seems like the exit scam notion is becoming more and more plausible to explain their situation. The next one should be Bitfinex (Cryptocapital can't hide any longer).
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: dunfida on March 29, 2019, 09:07:34 AM Another news update. Theres no secret that can really be hidden forever. Truth would come out no matter what and as the day has passed out these updates do proves out on most peoples doubts about on this mysterious death of Cotten.Whatever QuadrigaCX was, it is becoming clearer after every news update that it was not functioning only as an exchange. It was also something else. If it is proven true for QuadrigaCX, we can assume that it might be true for many of the other exchanges. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on June 10, 2019, 01:53:22 AM News update.
The FBI has begun collecting information from QuadrigaCX's victims. Why the FBI? It might be as I speculated. There are exchanges in the cryptospace that are created and used by a global money laundering ring. A press release published earlier this week showed the Federal Bureau Investigation (FBI) are on the Quadriga case now, investigating the exchange, which filed for bankruptcy following the death of Cotten. The FBI have published a questionnaire for victims, asking for personally identifying information, contact information and details about their QuadrigaCX accounts. Source https://cryptodaily.co.uk/2019/06/quadrigacx-victim-the-fbi-needs-your-help FBI questionaire https://forms.fbi.gov/seeking-victims-in-the-quadrigacx-investigation Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: figmentofmyass on June 10, 2019, 05:08:12 AM News update. The FBI has begun collecting information from QuadrigaCX's victims. Why the FBI? It might be as I speculated. There are exchanges in the cryptospace that are created and used by a global money laundering ring. it's not just the FBI. it looks like a joint investigation with the DOJ and US attorneys office. and also the IRS---wonder why they're involved. serious business! this may just be because quadrigacx served USA customers and left them in the lurch. the FBI does investigate money laundering cases, but the issue here is probably corporate fraud---false accounting, misrepresentation of financial condition, fraudulent trades---that caused major losses to investors. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on June 12, 2019, 02:11:11 AM @figmentofmyass. Do not leave the taxman out of the fun hehehe. Also, remember that it was tax evation that put Al Capone into imprisonment, not all his heinous crimes committed in his lifetime. No one escapes the taxman hehehehe.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: amishmanish on June 12, 2019, 05:16:39 AM --snip-- Totally agree with figmentofmyass: Totally agree with figment-of-my-ass too. It has a way of knowing when something is wrong..no pun intended! Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: semifamou5 on June 17, 2019, 09:24:41 AM Does everyone remember the story of QuadrigaCX's founder, who was claimed to be the only person in control of the exchange's cold wallet, died in India on December, 2018? There are new stories surfacing that the people left running the exchange are using the founder's death to exit scam. We might begin witnessing more small exchanges doing exit scams if the bear market extends out longer. Also, do not trade in small and unknown exchanges. https://3xz7gj47vd1t2zgr1q19hmwl-wpengine.netdna-ssl.com/wp-content/uploads/2018/11/scam.jpeg Quadriga's motto The Canadian exchange claims it has lost access to $145 million of digital assets due to its founder’s death, however, it is likely that QuadrigaCX never had this money. QuadrigaCX, the largest Canadian cryptocurrency exchange in terms of trade volume, has recently grabbed the headlines due to its controversial insolvency. It filed for creditor protection after the sudden death of the company’s founder and CEO Gerald Cotten, which had led to the liquidity crisis. The explanation for this was rather extraordinary. It turned out that Cotten was the only person who controlled all private keys to the cold storage wallets where QuadrigaCX used to hold almost all of its funds. As a result, QuadrigaCX had to confess it failed to locate or access about $145 million in various digital assets. At first, humanity prevailed. After all, Cotten was only 30 years old, and he went to India with a charitable goal to open an orphanage where he died. Meanwhile, his widow has been reportedly receiving threats from the clients of the exchange, who are furious and learning a tough lesson of the golden cryptocurrency rule, ‘not your keys, not your coins.’ Notably, Jesse Powell, the head of the Kraken exchange, which is one of the largest and most influential exchanges, also shares these views. In his latest post on Twitter, he touched on issues of witnesses, identity verification, and credibility of a death certificate. He is ready to share some insider information with Canadian authorities if the need arises. bitcoin loan (https://CryptocurrencyLoaning.com) Besides the above-mentioned $145 million in digital assets, the exchange also owes its users more than $50 million in fiat currency, according to the court filing. The fiat issues started because of a legal dispute between QuadrigaCX and the Canadian Imperial Bank of Commerce (CIBC), which last year froze multi-million accounts linked to Costodian Inc., one of Quadriga’s payment processors. There were also problems with Billerfy and WB21, two more payment processors working with Quadriga and are holding part of its funds. In this regard, Powell claimed the entire case looked very much like an exit scam. He cites the suspicious combination of recent developments, including sudden disappearance of the founder after fiat problems and high withdrawals. To make things worse, a respected crypto industry researcher, Crypto Medication, published a comprehensive blockchain analysis of Quadriga’s addresses and transactions. Based on its findings, the experts concluded that QuadrigaCX did not have as much Bitcoin as it claimed on the affidavit which it submitted to the Canadian court. Even worse, the researchers revealed that the exchange had no identifiable cold wallet reserves. Instead, it used one client’s deposits to fund another client’s withdrawals. This explains the occasional delays in withdrawal execution, as sometimes QuadrigaCX did not have enough liquid funds at its disposal. Read in full https://beincrypto.com/quadrigacx-saga-human-tragedy-or-yet-another-exit-scam/ ahhh not this again Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Sithara007 on June 18, 2019, 03:36:03 AM Ever since I first heard about Gerald Cotten's death, I was suspicious about the whole episode. And now everything seems to have confirmed, with the involvement of the criminal fraudster Omar Dhanani revealed now. Hopefully the victims may be reimbursed at least a part of their hard earned money. But the most frustrating thing is that the entire legal course can take many years and by the time when the investors get back their coins, it will be too late for many of them.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on June 21, 2019, 02:23:30 AM News update.
The truth will always come out and it has regarding to what has occured behind QuadrigaCX's closure. This is also embarassing, Gerald Cotten's wife was telling the media that his husband had a good heart by covering customer withdrawals from his own bank account. He was using customer deposits to speculate in other exchanges, however. I reckon the next step in the investigation is to look for more evidence of his death. Is he really dead hehehe? He died in a region in India where the fake death syndicates are located. Ernst & Young revealed that QuadrigaCX, a failed Canadian crypto exchange that lost almost $190 million of its users funds, may have committed fraud. Auditors found that the exchange’s late founder and CEO transferred user funds off QuadrigaCX and used them for margin trading on other exchanges, losing millions. Read in full https://cryptoslate.com/quadrigacx-ceo-lost-21000-bitcoin-customer-deposits/ Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on December 16, 2019, 12:41:14 AM News update.
QuadrigaCX's affected users will not accept death as Gerald's Cotten escape hehehe. However, it is very suspicious that he died in a place in India where the syndicates there are experts in faking deaths according to some articles. A letter sent by law firm Miller Thomson to the Royal Canadian Mounted Police (RCMP) asks for the authorities to dig up and examine the body of Gerald Cotten, who reportedly died of complications due to Crohn’s disease at the end of December 2018. Cotten was 30 at the time. “The purpose of this letter is to request, on behalf of the Affected Users, that the Royal Canadian Mounted Police (the ‘RCMP’), conduct an exhumation and post-mortem autopsy on the body of Gerald Cotten to confirm both its identity and the cause of death given the questionable circumstances surrounding Mr. Cotten’s death and the significant losses of Affected Users,” the letter reads. Source https://www.coindesk.com/request-for-exhumation-quadrigacx-creditors-ask-for-proof-that-cotten-is-dead Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 29, 2020, 03:26:15 AM News update.
It appears that another lesson was learned that we should not readily give our personal and private information to exchanges and other cryptocoin services. QuadrigaCX users, you should await a visit from the the tax collectors hehehehe. One of the biggest fears of cryptocurrency traders is losing control of their personal information. And that fear has become a reality for QuadrigaCX former users. Ernst & Young, the trustee overseeing the bankruptcy case for the failed Canadian crypto exchange, will be turning over all of Quadriga’s user info and data to the country’s tax collector. Read in full https://amycastor.com/2020/03/27/bankruptcy-trustee-to-hand-over-all-quadrigacx-user-data-to-canadas-tax-collector/ Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: squatter on March 29, 2020, 03:46:44 AM QuadrigaCX users, you should await a visit from the the tax collectors hehehehe. One of the biggest fears of cryptocurrency traders is losing control of their personal information. And that fear has become a reality for QuadrigaCX former users. Ernst & Young, the trustee overseeing the bankruptcy case for the failed Canadian crypto exchange, will be turning over all of Quadriga’s user info and data to the country’s tax collector. They are rubbing salt in the wounds now, coming after the victims. Imagine QuadrigaCX stealing or losing all your account value, and then getting slapped with a CRA tax enforcement on top of it. :-\ This is yet another reminder not only to minimize the funds you keep on exchanges, but to avoid KYC at all costs. You can never trust exchanges to protect your data. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: o_e_l_e_o on March 29, 2020, 06:33:06 AM What an absolute mess.
I am sure that there are a lot of people who lost money on Quadriga, both from the falling price of bitcoin at the time followed then by their exit scam, who did not declare that on their taxes. I would also guess that there are many of them who have never declared any crypto related activity on their taxes. We saw the same thing when Coinbase handed over the details of 13,000 customers to the IRS. Because the CRA also classifies any fiat-to-crypto, crypto-to-fiat, or even crypto-to-crypto trade as a taxable event, there will be a lot of people who are going to end up with tax bills for money they don't have, money that was stolen from them. That's going to be a kick in the teeth for sure. Don't use centralized exchanges. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: gentlemand on March 29, 2020, 10:35:16 AM Because the CRA also classifies any fiat-to-crypto, crypto-to-fiat, or even crypto-to-crypto trade as a taxable event, there will be a lot of people who are going to end up with tax bills for money they don't have, money that was stolen from them. That's going to be a kick in the teeth for sure. Don't use centralized exchanges. The article says Quardriga didn't keep any books. They're handing over the full database they have but that info might be garbled and meaningless. I don't see how they can bill you without a full rundown of everyone's moves. Hopefully they won't have enough evidence to make anyone's life difficult and this should be a lesson to the rest of us. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: o_e_l_e_o on March 29, 2020, 01:48:12 PM Hopefully they won't have enough evidence to make anyone's life difficult and this should be a lesson to the rest of us. If the CRA are anything like the IRS, they won't need enough, or pretty much any, evidence to make your life hell. If your name is on the list that is handed over, and you haven't declared crypto on your taxes, you can bet your bottom Canadian dollar that they will be coming after you, auditing you, harassing you for breakdowns of all the trades you made, etc. Since you won't exactly be able to access that information from Quadriga, if you haven't kept exact records (and I imagine most haven't), there will be a lot of people filing amended tax returns filled with guesswork.Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: gentlemand on March 29, 2020, 02:34:18 PM I've no idea what Canadian tax rules are but most places other than America should give you a tax free allowance.
And only this year and only in America have they made you admit to crypto involvement on your tax return. My name amongst a load of mumbo jumbo that's several years old wouldn't make me sweat but I would've coughed up some tax if need be anyway. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Harlot on March 29, 2020, 05:16:53 PM I don't see this as a bad thing for the users of QuadrigaCX. The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them. For one the money is earned from that exchange is already lost and two they can't use evidence or even they found out something new with that information as evidence against you as it is inadmissible in the court of law. So really what I'm seeing now is either they are delaying the case or they are just throwing trash to their taxing department which isn't really new on court cases.
Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: squatter on March 29, 2020, 11:27:54 PM The article says Quardriga didn't keep any books. They're handing over the full database they have but that info might be garbled and meaningless. QuadrigaCX may not have kept traditional books -- that were accessible to investigators anyway -- but they obviously kept a working database of user accounts and transactions. I assume their database can be pieced together by competent analysts. That's why they made this demand: Quote Following that, on Feb. 26, the CRA sent EY a seven-page production demand letter. The list of requests includes financial records and documents for tax years ended in 2016 to 2018, corporate legal records, and things like the platform’s raw database, files of AWS accounts, wallet addresses, fiat transaction records from payment processors, and so on. The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them. Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 30, 2020, 02:08:02 AM I don't see this as a bad thing for the users of QuadrigaCX. The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them. For one the money is earned from that exchange is already lost and two they can't use evidence or even they found out something new with that information as evidence against you as it is inadmissible in the court of law. So really what I'm seeing now is either they are delaying the case or they are just throwing trash to their taxing department which isn't really new on court cases. This is the type of reaction that bring users in trouble, I reckon. It can and will be used against you. Also, whatever can go wrong, will go wrong. It will also not be the first time. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: Harlot on March 30, 2020, 02:17:43 PM ~snip~ Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money. Like I said it's either a delaying tactic done by either them or the lawyers of QuadrigaCX and even if they will find something incriminating against them with the handed out information it will be rendered inadmissible in any kind of court since they can't use it as evidence against them in the first place. If they found some discrepancies with their earnings using that information I doubt the CRA would even have the power to do anything about that since the case is already about them recovering their lost capital. This is the type of reaction that bring users in trouble, I reckon. It can and will be used against you. Also, whatever can go wrong, will go wrong. It will also not be the first time. The users here really don't have any choice left since that information is something the CRA has asked for. Right now I wouldn't assume that this is something that they will be using against the customers and the CRA might even see something useful in the data to see some dirt against QuadrigaCX and not against their customers. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: squatter on March 30, 2020, 10:22:56 PM Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money. Like I said it's either a delaying tactic done by either them or the lawyers of QuadrigaCX and even if they will find something incriminating against them with the handed out information it will be rendered inadmissible in any kind of court since they can't use it as evidence against them in the first place. Why would it be inadmissible? I don't know how things work in Canada, but it would certainly be admissible in US courts. If they found some discrepancies with their earnings using that information I doubt the CRA would even have the power to do anything about that since the case is already about them recovering their lost capital. The CRA has no interest in investigating the exchange's failure. That has nothing to do with their mission. They have an interest in establishing new cases against tax evaders. They are demanding the data because they plan to use it against QuadrigaCX's customers. Title: Re: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. Post by: bbc.reporter on March 31, 2020, 02:02:48 AM @Harlot. However, our attitude towards KYC should always to be careful. Many users are very open to upload personal documents to cryptocoin exchanges which many are not regulated. This attitude should not be.
@squatter. QuadrigaCX might be a part of a Canadian tax evasion syndicate hehehehe. |
