June 9, 2023

QuadrigaCX customer data will be shared with Canada Revenue

Ernst & Young (EY), the trustee of the closed QuadrigaCX cryptocurrency exchange, will transmit the data Customers at Canada Revenue Service (CRA).

EY reported this week that CRA askedprovide information on the QuadrigaCX exchange, whose customers have been expecting a return of $ 190 million for more than a year, access to most of which is not yet possible.

Information requested by the Tax Serviceincludes financial reports, corporate legal records, documents related to contractors and other related parties, a list of accounts and wallet addresses, detailed information about fiat currencies and crypto assets held by users, analysis of user transactions and verified accounts.

“The trustee told CRA thatintends to provide a copy of the full EDiscovery database, edited only from the point of view of non-public data, in response to a request from the tax service, ”the latest EY report said.

The database includes personal information of users, as well as account balances and transaction data. According to a previous EY report, the database contains 750,000 individual documents.

At the close, QuadrigaCX totaled 115,000users with tools on the platform. Miller Thomson Law Firm, representing former QuadrigaCX users, said it would not oppose the EY solution in the interest of reducing costs and speeding up the process of distributing funds among users.

Members of the committee of creditors - several formerQuadrigaCX users who represent all customers in discussions with Miller Thomson have different views on potential privacy issues when transmitting this CRA information.

“Among other things, members of the Committee discussed in detailissues regarding the exchange of information with CRA, the protection of this information, the nature of personal information contained in the database, and the reasonable expectations of the victims, ”the letter says.

One of the Committee members, Magdalena Gronowska, wrote on the social network Twitter that the CRA request is "an unprecedented infringement of personal life."

“I am worried that this is like trying to collect incriminating materials,” she said.

Gronovska explained that EY in the past is alreadystated difficulties in calculating tax liabilities. This casts doubt on the need to provide CRA user data for calculating exchange debt. The tax service of Canada became interested in the activities of the exchange last September.

QuadrigaCX ceases mysterious activitiescircumstances. According to official information, the founder of the platform, Gerald Cotten, suddenly died in December 2018, and on January 28, 2019, the exchange went offline. In April, QuadrigaCX was declared bankrupt, and a month later the court temporarily exempted the exchange from prosecuting creditors.

Last summer, it became known that the founderQuadrigaCX used clients' money for personal trading on other exchanges, and earlier this year QuadrigaCX client lawyers demanded the exhumation of Cotten's body.