Jun 27, 2019
An article in The Globe and Mail looks at a report recently released by Ernst & Young, the monitor overseeing QuadrigaCX’s unwinding, which states that the late founder of the defunct cryptocurrency exchange, Gerald Cotten, created artificial trading volume and inflated company revenue.
Author Alexandra Posadzki discusses the report’s findings, including new revelations that Gerald Cotten moved customer funds to personal accounts at competing exchanges and made risky trades that “provide the strongest evidence yet that the operation was a fraud.” To gain insight into the report, Alexandra turns to industry experts, including Evan Thomas, a member of Osler’s cross-disciplinary team that advises on issues relating to blockchain technology and crypto-currencies.
“Based on what’s in the report, it was a fraud,” says Evan, counsel in Osler’s Litigation Group. “Quadriga represented that customer assets were secure but the founder was misappropriating those assets to fund his lifestyle and to trade on other exchanges.”
For more information, read Alexandra Posadzki’s full article “Quadriga monitor’s report offers strongest evidence yet of fraud, experts say” in The Globe and Mail.