Canadian Regulator Recognized Quadriga CX as Ponzi Scheme
Canada's former largest crypto exchange, Quadriga CX, is one of the most suspicious «puzzles» in the world of cryptocurrencies over the past few years. After the death of the 30-year-old head of the crypto trading platform, Gerald COTTEN, customers who have entrusted their funds to Quadriga CX cannot return the money — none of the employees have access to the financial funds of the exchange.
Currently, a large class action lawsuit has been filed in which customers of a dubious exchange are trying to return their funds. According to general estimates, they lost access to $215 mln in digital assets.
In its latest report, the Canadian financial regulator expressed the opinion that the crypto exchange Quadriga CX is a fraudulent scheme that is performed in the old-fashioned way, but using modern technologies. It is suspicious that the keys to exchange funds were available to only one person. Cotten is also known to have repeatedly used customer funds to cover previous losses associated with a fall in crypto market prices in 2018. The report also indicates that Cotten lost $115 mln in digital funds due to fraudulent trading practice and the use of money for personal purposes.
Image courtesy of Bits.media
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