In what is the latest twist in the ongoing #QuadrigaCX saga, there is some more bad news for users of the Canadian exchange, as the British #Colombia Securities Commission (BCSC) said on #Thursday that the exchange does not fall under its #purview, which means that users are not entitled to any #kind of investigative or compensatory action by the #regulator.
In the statement, #BCSC insisted that it is not aware of any business activities carried out by #QuadrigaCX that fall under its #regulatory scope, and therefore it is not responsible for regulating the #exchange, which is making #headlines for allegedly losing about $180 million of user funds after its founder #Gerald Cotton died with sole access to its cold #wallets.
In an email to Bloomberg, a BCSC spokesperson said:
[BCSC] does not currently have any indication that #Quadriga CX, the crypto asset trading #platform, was trading in securities or #derivatives or operated as a marketplace or exchange under British Columbia securities #laws.
CANADA’S PASSIVE AGGRESSIVE CRYPTO REGULATION POSTURE
It will be recalled that prior to its current round of #controversy, QuadrigaCX previously made headlines in 2018 when it accused Canada’s ‘Big 5’ #banks of colluding to frustrate its activities with the aim of slowing down crypto adoption in the #country.
Canadian authorities have consistently refused to adopt a progressive #crypto regulatory #framework, choosing instead to focus on fighting cybercriminals using crypto and issuing tersely worded #investment advisories to #consumers.
This pattern does not look set to change, as the #Canadian Securities Administrators (CSA) also issued another curtly worded statement on the matter, warning Canadian#consumers against using crypto exchange platforms which it is keen to point out are all currently unrecognised by the #CSA or any other #Canadian securities regulator.
In an email to Bloomberg, CSA spokesperson Ilana Kelemen said:
The CSA continues to urge #Canadians to be cautious when considering buying crypto-assets through trading #platforms.
Earlier it has been reported that the #exchange filed for creditor protection in the #Nova Scotia Supreme Court to give it time to get back its #financial footing following the loss of its cold #wallets.
With the news that #BCSC will not intervene in the matter, the #platform’s users will have to keep on waiting for a chance to commence legal action, as a judge on #Tuesday provided a temporary reprieve for the company with a 30 day stay on claims from creditors and #potential# lawsuits.
In the meantime, to all intents and #purposes, the $190 million in question remains lost forever, with all attempts to access the #wallets unsuccessful so far. According to Cotton’s widow Jennifer Robertson, Cotton did not write down the #keys anywhere before he passed away, and she has no knowledge of the wallet #passwords or security#keys.
According to #Robertson, she has also been the recipient of a number of threats since news broke that Cotton’s will #named her as his only executor and beneficiary. Many insist that #Cotton’s death is unproven despite an Indian #hospital’s attestation to the contrary, with the implicit #accusation that the whole saga may be an elaborate exit #scam.
Bitexplorer will continue to report on the #QuadrigaCX story as it develops.