Miller Thomson, the court-appointed legal counsel of QuadrigaCX victims, is seeking evidence to connect a relationship between the now-defunct crypto Exchange and Payments processor Crypto Capital.
In an email to the victims, the counsel requested them to hand over any evidence of ties between QuadrigaCX and Crypto Capital.
“Representative Counsel has received information that a Panamanian shadow bank, Crypto Capital Corp. (“Crypto Capital”), may have been a payment processor for Quadriga in the final quarter of its operation,” the publically available announcement read.
“Representative Counsel has been investigating, since its appointment, whether any Quadriga funds were potentially retained by Crypto Capital.”
On-going investigations against the payment processor
Crypto Capital was accused of providing “shadow banking” services to digital asset exchanges, including Bitfinex, which lost $850 million to the firm. Polish authorities seized $350 million of the payment processor’s funds in a bust likened to laundered drug cartel funds.
Meanwhile, the United States indicted Reginald Fowler, one of the co-founders of Crypto Capital, under the charges of bank fraud and conspiracy to commit bank fraud along with charges for operating an unlicensed money-transmitting business and conspiracy.
Per an official letter revealed to the press, Fowler has agreed to plead guilty to at least one of the charges and cooperate with the investigation. Though a hearing was scheduled for January 10, it was postponed for April as the prosecutors and defendants failed to reach any settlement.
Another co-founder of the payment processor, Ravid Yosef, is still at large.
Miller Thomson is now trying to investigate if the payment processor is still holding any funds belonging to the victims of the doomed exchange. Notably, the website of the shadow banking platform lists QuadrigaCX as one of its clients.
“As you are aware, Ernst & Young Inc. (the 'Trustee') has been unable to locate QuadrigaCX’s basic corporate records or accounting records,” the letter added. “As a result, Representative Counsel is asking Affected Users for assistance on this matter to uncover whether Crypto Capital held Quadriga funds.”
