The FBI is hot on the QuadrigaCX scandal that left nearly 115000 clients at a loss for their money and caused a total loss of nearly $200 million Canadain dollars. The CEO of the Vancouver based company, Gerald Cotton died under mysterious circumstances while on honeymoon with his wife.
He possessed the sole key to the encrypted passcodes of all the company’s assets and his death left the company in disarray. With wide speculations that his death might have been faked and the whole company might just be a guise for money laundering, private investigations have been unsuccessful in extracting enough information.
The victims’ services section of the FBI has posted a survey on its website asking potential victims to voluntarily disclose details about their account balances, transactions and other financial records linked to the company. This information, however, can only provide barely sufficient details for detecting hot storage wallets (actively connected to the internet with regular transactions). The cold storage wallets of the firm, however, were found to be empty by the accounting firm; Ernst and Young. The accounting firm has only managed to retrieve $28 million in assets and virtually everything is in cash.
The FBI says it is legally bound to identify victims of the federal crimes that it investigates and provide them with information and assistance. Respondents are also given the opportunity to outline any additional information about their relationship with QuadrigaCX that may aid in the FBI‘s investigation. The questionnaire asks potential victims what their QuadrigaCX username was, and whether they provided personal identifying documents to the exchange – read that as providing know-your-customer (KYC) documents. With this latest announcement, the FBI confirms it’s also working with Internal Revenue Service Criminal Investigation (IRS-CI), the United States Attorney’s Office for the District of Columbia, and the Department of Justice’s Computer Crime and Intellectual Property Section to conduct the investigation.