Why are QuadrigaCX’s bankruptcy proceedings getting a change of venue?

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Why are QuadrigaCX Bitcoin exchange bankruptcy proceedings getting a change of venue?

In the latest development in the saga involving what was once Canada’s largest Bitcoin exchange platform, QuadrigaCX’s bankruptcy proceedings have been moved to Toronto.

Meanwhile, there are reports of multiple law enforcement agencies investigating the circumstances surrounding the QuadrigaCX collapse.

Also, there are ongoing efforts to preserve the defunct company’s remaining assets with the court issuing a freeze on any asset liquidation.

Nova Scotia Supreme Court approves change of venue

Nova Scotia Supreme Court approves change of venue

According to Canadian media platform Global News, the Nova Scotia Supreme Court has approved moving the QuadrigaCX bankruptcy case to Toronto.

“Big Four” accounting firm Ernst and Young had previously requested the jurisdictional change in order to reduce travel and administrative expenses.

At the time of submitting its request, the accounting firm declared: “As the majority of the professionals are located in Ontario, there would be significant cost savings to transferring the proceedings to Ontario. There are very few remaining ties to Nova Scotia at this time.”

Of the over 76,000 affected customers of the bitcoin exchange, only 1.4% are based in Nova Scotia.

Thus, all parties in the matter, including Asim Iqbal, one of the lawyers representing the victims, say it is a good decision to move the case to Toronto.

Reports indicate that the proceedings will still include multiple court appearances involving regulators, law enforcement, and other agencies investigating the matter.

Law enforcement still investigating the Bitcoin exchange saga

Law enforcement still investigating the Bitcoin exchange saga

While the bankruptcy court case is proceeding, there are still active investigations into the several aspects of the QuadrigaCX saga.

Back in early March, reports emerged that the U.S. Federal Bureau of Investigation (FBI) and the Royal Canadian Mounted Police (RCMP) were looking into the matter.

The pair are two out of four law enforcement agencies involved in trying to track down the truth about the money as well as the death of Gerald Cotten.

Until his supposed demise in India back in December 2018, Cotten was the CEO of QuadrigaCX.

In a court filing submitted back in August, Ernst and Young — trustees of the exchange during this bankruptcy proceedings – noted:

“The trustee is aware of at least four independent active law enforcement or regulatory reviews in progress, which have included inquiries or, in some cases, formal requests for documents and/or data disclosure.”

The trustees have previously reported the recovery of over US$30 million [AU$43.7 million].

The total claim reported by the victims stands at about $160 million – $54 million in cash and $106 million in cryptocurrency deposits.

As previously reported by Micky, these missing crypto deposits include 61 Bitcoin, 960 Ether, and 2661 Bitcoin Gold, as well as, 33 Bitcoin Cash, and 851 Litecoin.