The unexpected death of Gerald Cotten, CEO of QuadrigaCX was a shocker for everyone. But things escalated quickly when the bankruptcy trustee of the exchange found out that there was no backup key to access the funds which were stored with the exchange.
Gerald was the only person who knew the password, and he didn’t create any backup for the funds or the password either. Now the Canadian Revenue Agency(CRA) has initiated an audit for the tax returns on the already doomed crypto exchange. Court has appointed the bankruptcy trustee Ernst & Young for this case.
This unfortunate death of the CEO caused millions to the company as digital assets of many users got blocked in the exchanges holding. The court initiated the process of recovering the funds earlier this year which belonged to the clients. However, the trustee found some transactions were made to the CEO’s account, which included the transferring of the digital funds belonging to the customers. He also traded digital assets using those customer funds.
The trustee is focused on collecting all the information they can get on the documents, organization, review and production efforts, and these will help in the final repayments to the 115,000 creditors of the exchange. Agencies like CRA, RCMP, the Ontario Securities Commission and the US Federal Bureau of Investigation are investigating into why the exchange collapsed and what was the reason behind this.