Home>Business>Canada’s Tax Authority Demands Personal Data on 115,000 QuadrigaCX Users
Business

Canada’s Tax Authority Demands Personal Data on 115,000 QuadrigaCX Users


EY, the court-appointed bankruptcy trustee for the defunct Canadian crypto exchange QuadrigaCX, has been asked to submit all of the exchange’s user information to the Canada Revenue Agency (CRA).

Court documents filed with the Ontario Superior Court of Justice on March 24 detail the demand, which spans 750,000 documents on the exchange’s 115,000 customers.

Canadian tax authority requests trove of QuadrigaCX user data

“The Trustee has advised CRA that its intention is to simply produce a copy of the full EDiscovery Database, redacted only for the privilege, in response to the CRA Production Demand,” the document states.

The requested data was collected by EY from both internal and third-party sources — spanning personal user information, account balances, and transaction histories from 2016 until 2018.

In a letter published March 25, Miller Thomson, the court-appointed firm representing Quadriga’s users, states that it chose to comply with the CRA request after considering the expense and delays that disputing the request would incur upon the bankruptcy proceedings.

“The official committee’s primary objective is to move the bankruptcy process towards a distribution expeditiously,” the letter states.

Creditor’s committee expresses privacy concerns

However, representatives of the creditor’s committee — a select group of former users representing the exchange’s customer base in talks with Miller Thomson — emphasized the privacy concerns of honoring the CRA request.

Miller Thomson notes that there were “significant divergent views among the members of the Official Committee on the nature of the privacy interests.”

Committee member Magdalena Grownowska tweeted that the demand is “an unprecedented affront to individual privacy,” expressing skepticism that the data is being collected by the CRA to calculate Quadriga’s tax liabilities — which EY had previously asserted would be “near impossible” to discern.

The collapse of QuadrigaCX

After launching in 2013, QuadrigaCX quickly gained traction and became one of the leading  crypto exchanges in Canada.

In 2018, the exchange began to experience increasing problems, with the Canadian Imperial Bank of Commerce freezing 28 million Canadian dollars (CAD) held across five accounts belonging to Quadriga subsidiary and payment processor Costodian Inc. The exchange would also partner with the shadow banking firm Crypto Capital.

In subsequent proceedings, the Ontario Superior Court found that it was unable to determine if the funds belonged to Costodian, QuadrigaCX, or Quadriga’s customers. User complaints of delayed withdrawal requests would mount during 2018 — which the exchange blamed on poor liquidity resulting from the frozen funds.

On Jan. 15, 2019, QuadrigaCX announced that its founder and CEO Gerry Cotten had died while traveling in India from medical complications associated with a pre-existing condition. With all of the exchange’s funds purportedly held in cold storage — for which only Cotten knew the password — the founder’s passing resulted in the loss of Quadriga’s CAD 190 million in user funds becoming inaccessible.





  • Bitcoin
  • Ethereum
  • Bitcoin cash
  • Litecoin
  • Cardano
  • Dash
  • Stellar
  • Ethereum classic
  • Lisk
  • Tron
  • Neo
  • Qtum
  • Omisego
  • Binance coin
  • Zcash
Scan to Donate Bitcoin to 1J6PGL1oemFb3hxabLygq4WgWx8cbfji1r

Please help us if you can with some Bitcoin

Scan the QR code or copy the address below into your wallet to send some Bitcoin

Scan to Donate Ethereum to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Ethereum

Scan the QR code or copy the address below into your wallet to send some Ethereum

Scan to Donate Bitcoin cash to qrth4e0g93h3gpxex8ycwuxtsa332tha5qvkmlz0g5

Please help us if you can with some Bitcoin cash

Scan the QR code or copy the address below into your wallet to send some Bitcoin cash

Scan to Donate Litecoin to LTxxjySMDtERJhHYJ99UFW9AamAWTwCAZ4

Please help us if you can with some Litecoin

Scan the QR code or copy the address below into your wallet to send some Litecoin

Scan to Donate Cardano to DdzFFzCqrhsopoZLhbouUwh2NvvWMPeFrXQW9vNNpPKrjKbRGyLRN5joJgCeZ6e1MRHtPHeLffpkNpQs5AdDA8qFCZ4gA9bYtaerNQTk

Please help us if you can with some Cardano

Scan the QR code or copy the address below into your wallet to send some Cardano

Scan to Donate Dash to XmAdEHrwiVZJVkAxe8hK5U6HZB59L5yhmK

Please help us if you can with some Dash

Scan the QR code or copy the address below into your wallet to send some Dash

Scan to Donate Stellar to GD4KROE42HPOMT7BT6M27HHLFCOSIXPYY2V3WSCX5FYEWRJDIJQ4RWFT

Please help us if you can with some Stellar

Scan the QR code or copy the address below into your wallet to send some Stellar

Scan to Donate Ethereum classic to 0x5BF3fCAC8deA20CF21C9D0D9d058E00EEfc431Ae

Please help us if you can with some Ethereum classic

Scan the QR code or copy the address below into your wallet to send some Ethereum classic

Scan to Donate Lisk to 15642042552518336132L

Please help us if you can with some Lisk

Scan the QR code or copy the address below into your wallet to send some Lisk

Scan to Donate Tron to TYnAenRiV6BsTiE6FVyAcDDxZtBKUQTFxN

Please help us if you can with some Tron

Scan the QR code or copy the address below into your wallet to send some Tron

Scan to Donate Neo to ATiXRHVqYqrNktbxJfcDETfnrSUWSG4cPb

Please help us if you can with some Neo

Scan the QR code or copy the address below into your wallet to send some Neo

Scan to Donate Qtum to QUYXxY6kX7TY2HSLwVYMwFaJNZLwvX5uyp

Please help us if you can with some Qtum

Scan the QR code or copy the address below into your wallet to send some Qtum

Scan to Donate Omisego to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Omisego

Scan the QR code or copy the address below into your wallet to send some Omisego

Scan to Donate Binance coin to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Binance coin

Scan the QR code or copy the address below into your wallet to send some Binance coin

Scan to Donate Zcash to t1cBCyKgSSqWaNrkpvQZUSTuxMmAbbAyFpZ

Please help us if you can with some Zcash

Scan the QR code or copy the address below into your wallet to send some Zcash



Source link

Review Overview

Summary