QuadrigaCX Controversy
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Ontario Securities Commission (the main securities regulating agency of Canada) has initiated a probe in the leading cryptocurrency exchange QuadrigaCX Controversy.

QuadrigaCX Controversy – What did the Canadian Securities Regular Say?

Reports say the Canadian securities regulator told media that they are looking into the QuadrigaCX cryptocurrency exchange’s controversy, “given the potential harm to Ontario investors”. It is also learned that the Ontario Securities Commission (OSC) is already contacted the monitor regarding the issue. When inquired whether this statement means that the concerned regulator is formally taking up the probe, spokesperson of OSC, Kristen Rose, declined to make any specific comment.

British Columbia Securities Commission said they don’t Regulate QuadrigaCX Cryptocurrency Exchange

Ontario Securities Commission’s starting probe in QuadrigaCX controversy comes at a time when the British Columbia Securities Commission (BCSC) has claimed that they don’t regulate the concerned crypto exchange. BCSC has reportedly said that the QuadrigaCX exchange doesn’t trade either securities or derivatives and that’s why they don’t regulate the exchange.

What’s the Fuss regarding the QuadrigaCX Controversy?

QuadrigaCX Controversy

The harm that the Ontario Securities Commission is going to investigate is the QuadrigaCX crypto exchange’s missing digital assets to the tune of CA$190 million (approximately equivalent to US$145 million).  

After the sudden death of the CEO of QuadrigaCX cryptocurrency exchange, Gerald William Cotten (at Fortis Escorts Hospital of Jaipur’s Malviya Nagar in India), access to the cold wallets storing all the cryptocurrencies of the exchange are lost. Gerald William Cotton was the only person having access to the cold wallets. He kept all the cryptos in cold wallets to keep the cryptocurrencies away from the reach of the hackers. The cold wallets are secure storage systems that are not connected to the internet.

Reports say the QuadrigaCX crypto exchange is only holding CA$375,000 (US$286,000) in terms of cash. However, the total amount of funds that the exchange owes to the users is CA$260 million (equivalent to the US$198,435,000).

Conclusion

Investors are worried whether they’ll get back their fund from the QuadrigaCX exchange. The crypto community is getting skeptical with every passing day. Just 12 days before the reported death of the exchange’s CEO, his wife Jennifer Robertson was named as the estate’s sole beneficiary. Jennifer Robertson said recently in an affidavit that she doesn’t know either the password or recovery key of the cold wallet. She went on to say:

“Despite repeated and diligent searches, I have not been able to find them written down anywhere.”

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