@Harlot. However, our attitude towards KYC should always to be careful. Many users are very open to upload personal documents to cryptocoin exchanges which many are not regulated. This attitude should not be.
@squatter. QuadrigaCX might be a part of a Canadian tax evasion syndicate hehehehe.
Topic: [2019-02-06] Locked bitcoins in QuadrigaCX might be another exit scam. (Read 630 times)
March 30, 2020, 09:02:48 PM
March 30, 2020, 05:22:56 PM
Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money.
Like I said it's either a delaying tactic done by either them or the lawyers of QuadrigaCX and even if they will find something incriminating against them with the handed out information it will be rendered inadmissible in any kind of court since they can't use it as evidence against them in the first place.
Why would it be inadmissible? I don't know how things work in Canada, but it would certainly be admissible in US courts.
If they found some discrepancies with their earnings using that information I doubt the CRA would even have the power to do anything about that since the case is already about them recovering their lost capital.
The CRA has no interest in investigating the exchange's failure. That has nothing to do with their mission. They have an interest in establishing new cases against tax evaders. They are demanding the data because they plan to use it against QuadrigaCX's customers.
March 30, 2020, 09:17:43 AM
~snip~
Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money.
Like I said it's either a delaying tactic done by either them or the lawyers of QuadrigaCX and even if they will find something incriminating against them with the handed out information it will be rendered inadmissible in any kind of court since they can't use it as evidence against them in the first place. If they found some discrepancies with their earnings using that information I doubt the CRA would even have the power to do anything about that since the case is already about them recovering their lost capital.
This is the type of reaction that bring users in trouble, I reckon. It can and will be used against you. Also, whatever can go wrong, will go wrong. It will also not be the first time.
The users here really don't have any choice left since that information is something the CRA has asked for. Right now I wouldn't assume that this is something that they will be using against the customers and the CRA might even see something useful in the data to see some dirt against QuadrigaCX and not against their customers.
March 29, 2020, 09:08:02 PM
I don't see this as a bad thing for the users of QuadrigaCX. The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them. For one the money is earned from that exchange is already lost and two they can't use evidence or even they found out something new with that information as evidence against you as it is inadmissible in the court of law. So really what I'm seeing now is either they are delaying the case or they are just throwing trash to their taxing department which isn't really new on court cases.
This is the type of reaction that bring users in trouble, I reckon. It can and will be used against you. Also, whatever can go wrong, will go wrong. It will also not be the first time.
March 29, 2020, 06:27:54 PM
The article says Quardriga didn't keep any books. They're handing over the full database they have but that info might be garbled and meaningless.
QuadrigaCX may not have kept traditional books -- that were accessible to investigators anyway -- but they obviously kept a working database of user accounts and transactions. I assume their database can be pieced together by competent analysts. That's why they made this demand:
The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them.
Why is the CRA demanding this data if not to use it against QuadrigaCX customers? They are a tax agency. They aren't investigating the site owners or trying to help the victims. They are here to collect tax money.
March 29, 2020, 12:16:53 PM
I don't see this as a bad thing for the users of QuadrigaCX. The company is just giving already known information from this users to a different department and even if they have found something like discrepancies in their earnings I don't think they can be used against them. For one the money is earned from that exchange is already lost and two they can't use evidence or even they found out something new with that information as evidence against you as it is inadmissible in the court of law. So really what I'm seeing now is either they are delaying the case or they are just throwing trash to their taxing department which isn't really new on court cases.
March 29, 2020, 09:34:18 AM
I've no idea what Canadian tax rules are but most places other than America should give you a tax free allowance.
And only this year and only in America have they made you admit to crypto involvement on your tax return.
My name amongst a load of mumbo jumbo that's several years old wouldn't make me sweat but I would've coughed up some tax if need be anyway.
And only this year and only in America have they made you admit to crypto involvement on your tax return.
My name amongst a load of mumbo jumbo that's several years old wouldn't make me sweat but I would've coughed up some tax if need be anyway.
March 29, 2020, 08:48:12 AM
Hopefully they won't have enough evidence to make anyone's life difficult and this should be a lesson to the rest of us.
If the CRA are anything like the IRS, they won't need enough, or pretty much any, evidence to make your life hell. If your name is on the list that is handed over, and you haven't declared crypto on your taxes, you can bet your bottom Canadian dollar that they will be coming after you, auditing you, harassing you for breakdowns of all the trades you made, etc. Since you won't exactly be able to access that information from Quadriga, if you haven't kept exact records (and I imagine most haven't), there will be a lot of people filing amended tax returns filled with guesswork. March 29, 2020, 05:35:16 AM
Because the CRA also classifies any fiat-to-crypto, crypto-to-fiat, or even crypto-to-crypto trade as a taxable event, there will be a lot of people who are going to end up with tax bills for money they don't have, money that was stolen from them. That's going to be a kick in the teeth for sure.
Don't use centralized exchanges.
Don't use centralized exchanges.
The article says Quardriga didn't keep any books. They're handing over the full database they have but that info might be garbled and meaningless. I don't see how they can bill you without a full rundown of everyone's moves.
Hopefully they won't have enough evidence to make anyone's life difficult and this should be a lesson to the rest of us.
March 29, 2020, 01:33:06 AM
What an absolute mess.
I am sure that there are a lot of people who lost money on Quadriga, both from the falling price of bitcoin at the time followed then by their exit scam, who did not declare that on their taxes. I would also guess that there are many of them who have never declared any crypto related activity on their taxes. We saw the same thing when Coinbase handed over the details of 13,000 customers to the IRS.
Because the CRA also classifies any fiat-to-crypto, crypto-to-fiat, or even crypto-to-crypto trade as a taxable event, there will be a lot of people who are going to end up with tax bills for money they don't have, money that was stolen from them. That's going to be a kick in the teeth for sure.
Don't use centralized exchanges.
I am sure that there are a lot of people who lost money on Quadriga, both from the falling price of bitcoin at the time followed then by their exit scam, who did not declare that on their taxes. I would also guess that there are many of them who have never declared any crypto related activity on their taxes. We saw the same thing when Coinbase handed over the details of 13,000 customers to the IRS.
Because the CRA also classifies any fiat-to-crypto, crypto-to-fiat, or even crypto-to-crypto trade as a taxable event, there will be a lot of people who are going to end up with tax bills for money they don't have, money that was stolen from them. That's going to be a kick in the teeth for sure.
Don't use centralized exchanges.
March 28, 2020, 10:46:44 PM
QuadrigaCX users, you should await a visit from the the tax collectors hehehehe.
One of the biggest fears of cryptocurrency traders is losing control of their personal information. And that fear has become a reality for QuadrigaCX former users.
Ernst & Young, the trustee overseeing the bankruptcy case for the failed Canadian crypto exchange, will be turning over all of Quadriga’s user info and data to the country’s tax collector.
One of the biggest fears of cryptocurrency traders is losing control of their personal information. And that fear has become a reality for QuadrigaCX former users.
Ernst & Young, the trustee overseeing the bankruptcy case for the failed Canadian crypto exchange, will be turning over all of Quadriga’s user info and data to the country’s tax collector.
They are rubbing salt in the wounds now, coming after the victims. Imagine QuadrigaCX stealing or losing all your account value, and then getting slapped with a CRA tax enforcement on top of it.
This is yet another reminder not only to minimize the funds you keep on exchanges, but to avoid KYC at all costs. You can never trust exchanges to protect your data.
March 28, 2020, 10:26:15 PM
News update.
It appears that another lesson was learned that we should not readily give our personal and private information to exchanges and other cryptocoin services.
QuadrigaCX users, you should await a visit from the the tax collectors hehehehe.
One of the biggest fears of cryptocurrency traders is losing control of their personal information. And that fear has become a reality for QuadrigaCX former users.
Ernst & Young, the trustee overseeing the bankruptcy case for the failed Canadian crypto exchange, will be turning over all of Quadriga’s user info and data to the country’s tax collector.
Read in full https://amycastor.com/2020/03/27/bankruptcy-trustee-to-hand-over-all-quadrigacx-user-data-to-canadas-tax-collector/
It appears that another lesson was learned that we should not readily give our personal and private information to exchanges and other cryptocoin services.
QuadrigaCX users, you should await a visit from the the tax collectors hehehehe.
One of the biggest fears of cryptocurrency traders is losing control of their personal information. And that fear has become a reality for QuadrigaCX former users.
Ernst & Young, the trustee overseeing the bankruptcy case for the failed Canadian crypto exchange, will be turning over all of Quadriga’s user info and data to the country’s tax collector.
Read in full https://amycastor.com/2020/03/27/bankruptcy-trustee-to-hand-over-all-quadrigacx-user-data-to-canadas-tax-collector/
December 15, 2019, 07:41:14 PM
News update.
QuadrigaCX's affected users will not accept death as Gerald's Cotten escape hehehe. However, it is very suspicious that he died in a place in India where the syndicates there are experts in faking deaths according to some articles.
A letter sent by law firm Miller Thomson to the Royal Canadian Mounted Police (RCMP) asks for the authorities to dig up and examine the body of Gerald Cotten, who reportedly died of complications due to Crohn’s disease at the end of December 2018. Cotten was 30 at the time.
“The purpose of this letter is to request, on behalf of the Affected Users, that the Royal Canadian Mounted Police (the ‘RCMP’), conduct an exhumation and post-mortem autopsy on the body of Gerald Cotten to confirm both its identity and the cause of death given the questionable circumstances surrounding Mr. Cotten’s death and the significant losses of Affected Users,” the letter reads.
Source https://www.coindesk.com/request-for-exhumation-quadrigacx-creditors-ask-for-proof-that-cotten-is-dead
QuadrigaCX's affected users will not accept death as Gerald's Cotten escape hehehe. However, it is very suspicious that he died in a place in India where the syndicates there are experts in faking deaths according to some articles.
A letter sent by law firm Miller Thomson to the Royal Canadian Mounted Police (RCMP) asks for the authorities to dig up and examine the body of Gerald Cotten, who reportedly died of complications due to Crohn’s disease at the end of December 2018. Cotten was 30 at the time.
“The purpose of this letter is to request, on behalf of the Affected Users, that the Royal Canadian Mounted Police (the ‘RCMP’), conduct an exhumation and post-mortem autopsy on the body of Gerald Cotten to confirm both its identity and the cause of death given the questionable circumstances surrounding Mr. Cotten’s death and the significant losses of Affected Users,” the letter reads.
Source https://www.coindesk.com/request-for-exhumation-quadrigacx-creditors-ask-for-proof-that-cotten-is-dead
June 20, 2019, 09:23:30 PM
News update.
The truth will always come out and it has regarding to what has occured behind QuadrigaCX's closure. This is also embarassing, Gerald Cotten's wife was telling the media that his husband had a good heart by covering customer withdrawals from his own bank account. He was using customer deposits to speculate in other exchanges, however.
I reckon the next step in the investigation is to look for more evidence of his death. Is he really dead hehehe? He died in a region in India where the fake death syndicates are located.
Ernst & Young revealed that QuadrigaCX, a failed Canadian crypto exchange that lost almost $190 million of its users funds, may have committed fraud. Auditors found that the exchange’s late founder and CEO transferred user funds off QuadrigaCX and used them for margin trading on other exchanges, losing millions.
Read in full https://cryptoslate.com/quadrigacx-ceo-lost-21000-bitcoin-customer-deposits/
The truth will always come out and it has regarding to what has occured behind QuadrigaCX's closure. This is also embarassing, Gerald Cotten's wife was telling the media that his husband had a good heart by covering customer withdrawals from his own bank account. He was using customer deposits to speculate in other exchanges, however.
I reckon the next step in the investigation is to look for more evidence of his death. Is he really dead hehehe? He died in a region in India where the fake death syndicates are located.
Ernst & Young revealed that QuadrigaCX, a failed Canadian crypto exchange that lost almost $190 million of its users funds, may have committed fraud. Auditors found that the exchange’s late founder and CEO transferred user funds off QuadrigaCX and used them for margin trading on other exchanges, losing millions.
Read in full https://cryptoslate.com/quadrigacx-ceo-lost-21000-bitcoin-customer-deposits/
June 17, 2019, 10:36:03 PM
Ever since I first heard about Gerald Cotten's death, I was suspicious about the whole episode. And now everything seems to have confirmed, with the involvement of the criminal fraudster Omar Dhanani revealed now. Hopefully the victims may be reimbursed at least a part of their hard earned money. But the most frustrating thing is that the entire legal course can take many years and by the time when the investors get back their coins, it will be too late for many of them.
June 17, 2019, 04:24:41 AM
Does everyone remember the story of QuadrigaCX's founder, who was claimed to be the only person in control of the exchange's cold wallet, died in India on December, 2018? There are new stories surfacing that the people left running the exchange are using the founder's death to exit scam.
We might begin witnessing more small exchanges doing exit scams if the bear market extends out longer.
Also, do not trade in small and unknown exchanges.
https://3xz7gj47vd1t2zgr1q19hmwl-wpengine.netdna-ssl.com/wp-content/uploads/2018/11/scam.jpeg
Quadriga's motto
The Canadian exchange claims it has lost access to $145 million of digital assets due to its founder’s death, however, it is likely that QuadrigaCX never had this money.
QuadrigaCX, the largest Canadian cryptocurrency exchange in terms of trade volume, has recently grabbed the headlines due to its controversial insolvency. It filed for creditor protection after the sudden death of the company’s founder and CEO Gerald Cotten, which had led to the liquidity crisis.
The explanation for this was rather extraordinary. It turned out that Cotten was the only person who controlled all private keys to the cold storage wallets where QuadrigaCX used to hold almost all of its funds. As a result, QuadrigaCX had to confess it failed to locate or access about $145 million in various digital assets.
At first, humanity prevailed. After all, Cotten was only 30 years old, and he went to India with a charitable goal to open an orphanage where he died. Meanwhile, his widow has been reportedly receiving threats from the clients of the exchange, who are furious and learning a tough lesson of the golden cryptocurrency rule, ‘not your keys, not your coins.’
Notably, Jesse Powell, the head of the Kraken exchange, which is one of the largest and most influential exchanges, also shares these views. In his latest post on Twitter, he touched on issues of witnesses, identity verification, and credibility of a death certificate. He is ready to share some insider information with Canadian authorities if the need arises. bitcoin loan
Besides the above-mentioned $145 million in digital assets, the exchange also owes its users more than $50 million in fiat currency, according to the court filing. The fiat issues started because of a legal dispute between QuadrigaCX and the Canadian Imperial Bank of Commerce (CIBC), which last year froze multi-million accounts linked to Costodian Inc., one of Quadriga’s payment processors. There were also problems with Billerfy and WB21, two more payment processors working with Quadriga and are holding part of its funds.
In this regard, Powell claimed the entire case looked very much like an exit scam. He cites the suspicious combination of recent developments, including sudden disappearance of the founder after fiat problems and high withdrawals.
To make things worse, a respected crypto industry researcher, Crypto Medication, published a comprehensive blockchain analysis of Quadriga’s addresses and transactions. Based on its findings, the experts concluded that QuadrigaCX did not have as much Bitcoin as it claimed on the affidavit which it submitted to the Canadian court.
Even worse, the researchers revealed that the exchange had no identifiable cold wallet reserves. Instead, it used one client’s deposits to fund another client’s withdrawals. This explains the occasional delays in withdrawal execution, as sometimes QuadrigaCX did not have enough liquid funds at its disposal.
Read in full https://beincrypto.com/quadrigacx-saga-human-tragedy-or-yet-another-exit-scam/
We might begin witnessing more small exchanges doing exit scams if the bear market extends out longer.
Also, do not trade in small and unknown exchanges.
https://3xz7gj47vd1t2zgr1q19hmwl-wpengine.netdna-ssl.com/wp-content/uploads/2018/11/scam.jpeg
Quadriga's motto
The Canadian exchange claims it has lost access to $145 million of digital assets due to its founder’s death, however, it is likely that QuadrigaCX never had this money.
QuadrigaCX, the largest Canadian cryptocurrency exchange in terms of trade volume, has recently grabbed the headlines due to its controversial insolvency. It filed for creditor protection after the sudden death of the company’s founder and CEO Gerald Cotten, which had led to the liquidity crisis.
The explanation for this was rather extraordinary. It turned out that Cotten was the only person who controlled all private keys to the cold storage wallets where QuadrigaCX used to hold almost all of its funds. As a result, QuadrigaCX had to confess it failed to locate or access about $145 million in various digital assets.
At first, humanity prevailed. After all, Cotten was only 30 years old, and he went to India with a charitable goal to open an orphanage where he died. Meanwhile, his widow has been reportedly receiving threats from the clients of the exchange, who are furious and learning a tough lesson of the golden cryptocurrency rule, ‘not your keys, not your coins.’
Notably, Jesse Powell, the head of the Kraken exchange, which is one of the largest and most influential exchanges, also shares these views. In his latest post on Twitter, he touched on issues of witnesses, identity verification, and credibility of a death certificate. He is ready to share some insider information with Canadian authorities if the need arises. bitcoin loan
Besides the above-mentioned $145 million in digital assets, the exchange also owes its users more than $50 million in fiat currency, according to the court filing. The fiat issues started because of a legal dispute between QuadrigaCX and the Canadian Imperial Bank of Commerce (CIBC), which last year froze multi-million accounts linked to Costodian Inc., one of Quadriga’s payment processors. There were also problems with Billerfy and WB21, two more payment processors working with Quadriga and are holding part of its funds.
In this regard, Powell claimed the entire case looked very much like an exit scam. He cites the suspicious combination of recent developments, including sudden disappearance of the founder after fiat problems and high withdrawals.
To make things worse, a respected crypto industry researcher, Crypto Medication, published a comprehensive blockchain analysis of Quadriga’s addresses and transactions. Based on its findings, the experts concluded that QuadrigaCX did not have as much Bitcoin as it claimed on the affidavit which it submitted to the Canadian court.
Even worse, the researchers revealed that the exchange had no identifiable cold wallet reserves. Instead, it used one client’s deposits to fund another client’s withdrawals. This explains the occasional delays in withdrawal execution, as sometimes QuadrigaCX did not have enough liquid funds at its disposal.
Read in full https://beincrypto.com/quadrigacx-saga-human-tragedy-or-yet-another-exit-scam/
ahhh not this again
June 12, 2019, 12:16:39 AM
--snip--
Totally agree with figmentofmyass:
Totally agree with figmentofmyass:
Totally agree with figment-of-my-ass too. It has a way of knowing when something is wrong..no pun intended!
June 11, 2019, 09:11:11 PM
@figmentofmyass. Do not leave the taxman out of the fun hehehe. Also, remember that it was tax evation that put Al Capone into imprisonment, not all his heinous crimes committed in his lifetime. No one escapes the taxman hehehehe.
June 10, 2019, 12:08:12 AM
News update.
The FBI has begun collecting information from QuadrigaCX's victims. Why the FBI? It might be as I speculated. There are exchanges in the cryptospace that are created and used by a global money laundering ring.
The FBI has begun collecting information from QuadrigaCX's victims. Why the FBI? It might be as I speculated. There are exchanges in the cryptospace that are created and used by a global money laundering ring.
it's not just the FBI. it looks like a joint investigation with the DOJ and US attorneys office. and also the IRS---wonder why they're involved. serious business!
this may just be because quadrigacx served USA customers and left them in the lurch. the FBI does investigate money laundering cases, but the issue here is probably corporate fraud---false accounting, misrepresentation of financial condition, fraudulent trades---that caused major losses to investors.
June 09, 2019, 08:53:22 PM
News update.
The FBI has begun collecting information from QuadrigaCX's victims. Why the FBI? It might be as I speculated. There are exchanges in the cryptospace that are created and used by a global money laundering ring.
A press release published earlier this week showed the Federal Bureau Investigation (FBI) are on the Quadriga case now, investigating the exchange, which filed for bankruptcy following the death of Cotten.
The FBI have published a questionnaire for victims, asking for personally identifying information, contact information and details about their QuadrigaCX accounts.
Source https://cryptodaily.co.uk/2019/06/quadrigacx-victim-the-fbi-needs-your-help
FBI questionaire https://forms.fbi.gov/seeking-victims-in-the-quadrigacx-investigation
The FBI has begun collecting information from QuadrigaCX's victims. Why the FBI? It might be as I speculated. There are exchanges in the cryptospace that are created and used by a global money laundering ring.
A press release published earlier this week showed the Federal Bureau Investigation (FBI) are on the Quadriga case now, investigating the exchange, which filed for bankruptcy following the death of Cotten.
The FBI have published a questionnaire for victims, asking for personally identifying information, contact information and details about their QuadrigaCX accounts.
Source https://cryptodaily.co.uk/2019/06/quadrigacx-victim-the-fbi-needs-your-help
FBI questionaire https://forms.fbi.gov/seeking-victims-in-the-quadrigacx-investigation
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