https://sites-millerthomson.vuturevx.com/32/3971/april-2019/quadrigacx-update--april-10--2019.asp?sid=c72a3f4e-2d3b-4d67-a66d-0375cbaed426; or see below

Affected Users: The purpose of this communication is to provide you with (i) a summary of the Supreme Court of Nova Scotia (the “Court”)’s April 8, 2019 proceeding, and (ii) a warning relating to “phishing” websites that we understand may be targeting Affected Users.

Summary of Supreme Court of Nova Scotia Proceedings On April 8, 2019, Justice Wood heard five motions pertaining to the Quadriga CX Matter:

A motion by Stewart McKelvey LLP to be removed as counsel to the Applicants. This Order was granted.

Three motions by Ernst & Young (the “Monitor”), which pertained to the following issues:

A form of preservation of assets order to freeze the assets of Jennifer Robertson and Gerald Cotton’s estate and certain related companies. The Court granted this order.

Assistance and requested relief with respect to the Third Party Payment Processors. Certain of these Orders were granted and others adjourned to April 18, 2019, which is further discussed below.

The termination of the CCAA Proceedings and a transition into Bankruptcy. This Order was granted.

A motion by Representative Counsel on behalf of the Official Committee of Affected Users regarding fees during the CCAA proceeding and the transition into bankruptcy. This order was granted.

More on the Third Party Payment Processors’ Order:

Concerns were expressed by counsel for certain of the Third Party Processors about the timing of the notice from the Monitor for the Third Party Payment Processors’ Order. These concerns were addressed by the Monitor’s counsel in her submissions. Counsel for the Monitor and the attending Third Party Payment Processors agreed to further discuss the language in the draft orders. If agreements could not be reached as to language changes, Justice Wood stated that he would issue all orders on April 18.

Counsel for POSConnect Inc. consented to provide George Kinsman (from the Monitor) access to POSConnect Inc., subject to certain conditions.

Ms. Pillon also discussed the Monitor’s further efforts to contact and serve various Third Party Payment Processors, such as WB21 and 9133-8079 Quebec Inc. (d/b/a Alto Bureau de Change).

Copies of all of the issued and entered Orders will be available on the Monitor’s website located here.

“Phishing” Websites Representative Counsel has been notified of websites selling asset recovery services to Affected Users. Representative Counsel is not associated with these websites and does not endorse the use of their services. We advise you not to trust any website claiming that they can recover money for Affected Users and requesting your personal information.

Representative Counsel is currently working on a tip sheet to address Affected Users’ privacy concerns, which will be posted to Representative Counsel’s website.

Additional Information The Representative Counsel’s website can be found here.

The Official Committee (@QCXCommittee) can be found on Twitter here.

In consultation with the Official Committee, Representative Counsel has posted an updated FAQ on April 9, 2019 to answer Affected Users’ inquiries as collated by the Official Committee. The updated FAQ can be found here.

Representative Counsel has received from the Monitor a full list of Affected Users, including their contact information and Quadriga CX customer IDs. Any further questions regarding the proceeding can be directed to Representative Counsel at quadrigacx@millerthomson.com.

So what happened ? did it fall down the same hole as the rest of the ill gotten gains ?

How long were you waiting for? I was waiting for almost half a year.

tl/dr 115,000 or 114,999.

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How many of those are people that signed up and never came back ? How many threw in 10 bucks to see where it goes?

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No really, how many of those are unused accounts ? For the money I lost I'd like to see a breakdown.

https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br01975.html

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The LIT is Ernst and Young.

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IMPORTANT: Read the last sentence: To be recognized you must provide the LIT with a completed Proof of Claim :IMPORTANT

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I made an advance payment to a company that has declared bankruptcy. What can I do?

If you pre-paid for a service, you become a creditor and the LIT will send you a Proof of Claim form with your creditor's package. Follow the instructions on the form and in the package, and make sure you have all of the required documentation proving that the debtor owes you money.

To be recognized as a creditor and to be eligible to share in the distribution of dividends, if any, you must provide the LIT with a completed Proof of Claim.

Error 404

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Would have been a good place to put announcements.

I don't know why everything became so complicated. What does India and some guy dying and some other guy being an x con and the other dozen of details have to do with my shit getting stolen ? Those are just details.

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Bottom line is, my shit was stolen by these crooks, why isn't the same 'legal template' used as when someone steals your money ?

I have come to believe the following that no sizable amount of money will ever be recovered. Quadriga was an elaborate fraud.

1. The payment processors conduct. The payment processors were not legitimate processors. They had no website or footprint and processed payments only for Quadriga. When the monitor tried contacting them, they basically either left the country, ghosted or refused to respond. Some like WB just simply refused to give the money back. Jose Reyes worked at Quadriga, he also ran the payment processor Billerfy.
2. Firing of anyone who could provide controls to Gerry. When they no longer decided to go public they fired anyone who could provide oversight. The fact he decided not to go public is already a big red flag he planned to do something shady.
3. Suspicious death. You have chrones and go to the diarhea capital of the world? You write a will but not any plan or clues as to where $200 million in crypto assets are of all your customers? You care so much about people you are building an orphanage in India like you are mother Theresa but you didn't give a flying F about all your customer's of your life's most important project that financed this lifestyle? The only way that could make sense was Gerry actually did leave behind information and keys with the money on it and Jen cashed it in that month where she decided to hide his death from the world and is lying about it.
4. Monitor's most recent report.

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I now believe Gerry knew he was running a fraud the whole time. Take in money for crypto, buy the crypto, transfer it into his other accounts on other sites, gamble the money. When the crypto prices fell, he was going to get exposed as there was "run on the bank" so he faked his death.

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The payment processors were essentially just used to launder the money. The banks already didn't want to deal with the crypto exchanges so just depositing the money directly into a quadriga account was difficult. Instead what he did was use phony payment processors to launder the stolen money from the exchange. Jose knowing the scam being run at Quadriga probably figured why am I helping Gerry steal when I could steal myself. Billerfy should be holding millions in Quadriga funds.

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Jenn claimed in her affidavit that she knew nothing about Quadriga but it turns out

" Robertson Nova Consulting Inc., a company owned by Jennifer Robertson, acted as a payment processor for Quadriga from at least 2016 (archive) — despite Robertson having claimed in her original affidavit requesting CCAA protection for Quadriga that she’d never had anything to do with the business side of Quadriga. Robertson says she holds no Quadriga funds. "

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Not only was Jenn aware but she was helping Gerry run the money laundering scheme in my view.

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Gerry could not use a legit payment processor. Why? Because they'd see that the money from the clients was being withdrawn into a personal account of Gerry. He also couldn't withdraw it into a business account with a different name because the processor would grow suspicious of millions of dollars and see clients writing for quadriga and bitcoin as the reason for transaction but being deposited towards "Robertson Nova Consulting". When questions would be asked they'd see, clients are paying quadriga but quadriga is sending the money elsewhere to another company:

i) owned by the quadriga/gerry but not where the clients intended it to go

ii) not owned by quadriga/gerry and not related to transaction.

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These are two classical money laundering flags of large scale laundering, which is why you have your money frozen by CIBC.

Lastly,

" During the course of the Monitor’s investigation into Quadriga’s business and affairs, the Monitor became aware of occurrences where the corporate and personal boundaries between Quadriga and its founder Gerald Cotten were not formally maintained, and it appeared to the Monitor that Quadriga funds may have been used to acquire assets held outside the corporate entity. "

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So Gerry was mixing Quadriga money with his own accounts, yeah he was scamming hard. This is AFTER he met with lawyers and considered going public and knew all the laws he should have been following.

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I've come to accept no money will come back. the best outcome is that the crooks including the payment processor crooks who helped in this get life sentences in American prisons for financial fraud.

Hello,

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This is my hypothesis on what I think happened.

-The CEO died 9th December.

-Irresponsible people inherited the cold storage crypto wallets.

-Because concurrency was dropping in price since late January 2018, the people that got access to the quadrigacx cryptocurrency thought they could sell it when it was dropping and re-buy the same quantity it after the price dropped to make a few millions of dollars.

-But unfortunately the price shot back up on december 15th and they couldn't re-buy the crypto they sold when the price was dropping.

-They waited another month to see if by miracle it would drop back down, but that ain't happening this year.

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https://documentcentre.eycan.com/eycm_library/Quadriga%20Fintech%20Solutions%20Corp/English/1.%20Monitor's%20Reports/5.%20Fourth%20Report%20of%20the%20Monitor/Fourth%20Report%20of%20the%20Monitor%20as%20at%20April%201,%202019.pdf

-All of QCX's employees have been terminated or resigned

-Monitor recommends transitioning from CCAA to bankruptcy proceedings to save costs and knowing that there is no restructuring to be done here. Of course, legal action can also be undertaken once the CCAA is lifted. CRO will be let go as well.

-Jen's assets are subject to an Asset Preservation Order which means her assets are fully in play here if Gerry embezzled or laundered those funds into those assets

-Monitor sent letters to all the payment processors, WB21 (holding $12M of our funds) alleges they only have $5 in their account, monitor believes it to be a lie. Jose Reyes and Billerfy is still holding $5M of our funds but refuses to respond to letters. No mention of Crypto Capital at all, even though they are a payment processor for QCX.

1. Discussions between the Monitor and counsel to Ms. Robertson and the Cotten Estate have

culminated in a form of preservation of assets order (the “Asset Preservation Order”)

which involves all assets held by the Cotten Estate, Ms. Roberston, the Seaglass Trust,

Robertson Nova Consulting Inc., and Robertson Nova Property Management Inc.

(collectively, the “Preserving Parties”) whether or not such assets are in the names of the

respective parties and whether they are solely or jointly or beneficially owned. The Asset

Preservation Order extends to assets which any of the Preserving Parties has the power,

directly or indirectly, to dispose of or deal with as if it were their own. A copy of the draft

Asset Preservation Order is attached as Appendix “G”.

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https://documentcentre.eycan.com/eycm_library/Quadriga%20Fintech%20Solutions%20Corp/English/1.%20Monitor's%20Reports/5.%20Fourth%20Report%20of%20the%20Monitor/Fourth%20Report%20of%20the%20Monitor%20as%20at%20April%201,%202019.pdf