Law Firm Representing Quadriga’s Ex-Users Want Info About ‘Shadow Bank’ Crypto Capital

Miller Thomson, the court-appointed authorized counsel for former customers of the QuadrigaCX cryptocurrency alternate, is asking for assist figuring out any data associated to Crypto Capital, which can be holding a number of the alternate’s funds.

In a letter emailed to the alternate’s former prospects and posted to its web site, Miller Thomson wrote that Crypto Capital Corp., a “shadow financial institution” registered in Panama, “might have been a cost processor” for the alternate and is asking any prospects who’ve emails or different paperwork which may be associated to Crypto Capital to ahead the communications to the authorized agency.

“Consultant Counsel has been investigating, since its appointment, whether or not any Quadriga funds have been doubtlessly retained by Crypto Capital,” Wednesday’s letter stated.

The letter referenced the continued court docket case between the U.S. Division of Justice and Crypto Capital, noting that the shadow financial institution’s operators are presently beneath indictment. Reginald Fowler, one of many alleged operators of the corporate, is in court docket and could also be heading to trial on costs of financial institution fraud, working an unlicensed cash transmitter and conspiracy.

Fowler supposed to plead responsible to at least one cost of working an unlicensed cash transmitter, however negotiations between his attorneys and the prosecutors have but to be concluded. He’s now scheduled to look in a New York courthouse in late April.

Wednesday’s letter additionally referenced the truth that Bitfinex, one other crypto alternate, has claimed to be defrauded by Crypto Capital and is searching for data and rights to seized belongings within the shadow financial institution’s possession within the U.S., Portugal and the U.Ok., three jurisdictions which have reportedly frozen Crypto Capital’s belongings.

“As you’re conscious, Ernst & Younger Inc. (the ‘Trustee’) has been unable to find QuadrigaCX’s primary company data or accounting data. In consequence, Consultant Counsel is asking Affected Customers for help on this matter to uncover whether or not Crypto Capital held Quadriga funds,” the letter stated.