The Ontario Securities Commission (OSC) has initiated a probe into Canada’s major cryptocurrency exchange QuadrigaCX, Reuters reportable on February. 8.
The Ontario Securities Commission reportedly told Reuters that “given the potential damage to Ontario investors, we tend to are looking into this matter and have already been in contact with the monitor.” OSC spokesperson Kristen Rose reportedly declined to specify whether this implies the Commission was formally investigating the exchange.
The news comes within the wake of British Columbia Securities Commission’s claim that it doesn't regulate QuadrigaCX since the corporate has reportedly not shown signs of trading of securities or derivatives, or operative as an exchange in general. The same harm supposedly refers to the exchange’s missing funds within the amount of CA$190 million bucks ($145 million) in digital assets discovered when the death of QuadrigaCX’s founder Gerald Cotten in Dec.
Quadriga has not been able to access its cold wallets where it kept most of the assets, as a result of Cotten was supposedly solely liable for the wallets and corresponding keys. Cold wallets are storage systems for digital assets that aren't connected to the web, that prevents users from being hacked. The exchange supposedly solely has CA$375,000 ($286,000) in money, whereas it owes CA$260 million ($198,435,000) to its users.
The crypto community has been sceptical about the circumstances surrounding Cotten's death, particularly when news broke that his can, naming his wife Jennifer Robertson as the sole beneficiary of his estate, was free 12 days before his death. Robertson reportedly declared in an legal instrument that “I don't know the password or recovery key. Despite recurrent and diligent searches, i have not been able to find them written down anyplace.”
Last year, the Canadian Imperial Bank of Commerce (CIBC) froze 5 accounts belonging to Quadriga’s payment processor, Costodian INC., and its owner, Jose Reyes, totalling to $21.6 million. The bank supposedly froze the accounts because of an inability to identify the funds’ owners.
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