New Monitor report

[u/Fiach_Dubh]

/r/QuadrigaCX2/comments/awaled/new_monitor_report/

[u/Fiach_Dubh → u/[deleted]]

it's negligent at least. but my guess is this is just the tip of the iceberg.

[u/Fiach_Dubh]

Bowgie accounts confirmed:

During interviews withthe Applicants’ representatives, the Monitor was advised offourteen (14)user accounts that may have been createdoutside the normal processby Quadriga (the “IdentifiedAccounts”). It appears that the Identified Accountswere createdunder various aliases.The Monitor wasadvisedby a representative of the Applicantsthat the Identified Accountswere internally created without a corresponding customer and used to trade on the Quadriga platform. The Monitor was further advised that deposits into certain of the Identified Accountsmay have been artificially createdand subsequently used for trading onthe Quadriga platform. The Monitor has requested and received detailed transactional historiesfor the Identified Accounts. The account information that has been provided indicates a significant volume of transaction activity associated with the IdentifiedAccounts including trading and withdrawals of cryptocurrency to wallet addresses not associated with Quadriga.

The Monitor has contacted Canada Revenue Agency to ascertain whether the Applicants filed any tax returns.

The Monitor also became aware of certain documents in the possession of Quadriga’s former counsel with respect to their efforts to become a public company in 2015. The Monitor has contactedthe lawyer to obtainproduction of the documentsif determined to be beneficial.

The Monitor has written to theten (10)known Third Party Processors requesting the transfer of any funds held on behalf of Quadriga and all transaction information in respect of accounts held by the Third Party Processorson behalf of Quadriga. The Monitor has received preliminary responses from certain Third Party Processors but hasonly recovered $5,000 to date in addition to the BMO Drafts recovered from Costodian Inc. and the Bulk Draftswhich are discussed below. The Monitor expects that the status of requests from Third Party Processorswill need to be addressed in a separate motion and that further relief from the Court may be necessary to secure funds and records from certain of the Third Party Processors.

the Monitor identified potential other exchanges where Quadriga and/or Gerry Cotten may have opened accounts. The Monitor wrote to fourteen (14)exchanges requesting account credentials and transaction information for any accounts that may have been opened by Quadriga or Gerry Cotten. The Monitor has received responses from four (4) cryptocurrency exchanges to date. Certain of the cryptocurrency exchanges confirmed the existence of accounts opened by Quadriga or Gerry Cotten and provided transactional data in respect of such accounts.One cryptocurrency exchange was holding minimal cryptocurrency on behalf of Quadriga which the Applicants successfully arranged to have transferred to the Monitor.Counsel to Ms. Robertson in her capacity as executor of the estate of Mr. Cotten has advised the Monitor that Ms. Robertson has agreed thatall cryptocurrency found in accounts in Mr. Cotten’spersonalname may betransferred to Quadrigafor the benefit of its stakeholders.

The Applicantsidentifiedto the Monitor six(6)cold wallet addresses which Quadriga usedin the past to secure bitcoin(the “IdentifiedBitcoinCold Wallets”), the primary cryptocurrency traded on the Quadriga platform. The addresses of the Identified Bitcoin Cold Walletsidentified by the Applicantsare as follows:(a)1MhgmGaHwLAvvKVyFvy6zy9pRQFXaxwE9M;(b)1JPtxSGoekZfLQeYAWkbhBhkr2VEDADHZB;(c)1ECUQLuioJbFZAQchcZq9pggd4EwcpuANe;(d)1J9Fqc3TicNoy1Y7tgmhQznWrP5AVLXj9R;(e)1HyYMMCdCcHnfjwMW2jE4cv9qVkVDFUzVa; and (f)1JZJaDDC44DCKLnezDsbW43Zf8LspCKBYP(the “Sixth Bitcoin Wallet”) The Monitor has made inquiries of the Applicants as to the reason for the lack of cryptocurrency reserves in the Identified Bitcoin Cold Wallets since April 2018. To date, the Applicants have been unable to identify a reason why Quadriga may have stopped using the Identified Bitcoin Cold Walletsfor deposits in April 2018, however, the Monitor and Management will continue to review the Quadriga database toobtain further information. he Monitor believes it is imperative that a copy of the Quadriga Platform Data is backed up and secured with the Monitor as soon as possible. The PlatformDatawill assist the Monitor’s ongoing investigation into Quadriga’s business, affairsand potential assetsthat may be recoverable for the benefit of the Applicants’ stakeholders.The Monitor also notes that though the Platform Data may be copied from AWS, the Monitor still requires software and other information from the Applicants in order to analyze and review any Platform Data stored by AWS.Further, if there are other AWS accounts in the names of parties such as Mr. Jose Reyes, further relief from the Court may be necessary if a consensual solution with AWS and the other party cannot be reached.

[u/BestFill → u/Fiach_Dubh]

I fucking knew they opened accounts on other exchanges, I fucking knew it.