The Ontario Securities Commission confirmed in a statement to Reuters on Friday that regulators are looking into the issues surrounding QuadrigaCX, the besieged Canadian cryptocurrency company whose founder passed away in December. The OSC cited concerns about potential harm for investors as a reason for its interest, though commission spokesperson Kristen Rose refused to confirm that there is an official investigation.
Many investors with funds in the exchange have been frustrated, as the death of the company’s founder has reportedly left the company with no access to its cryptocurrency wallets. As a result, those customers have been unable to access those funds since late last year. About $180 million CAD is believed to be trapped in those accounts.
Goodmans LLP technology group co-chair Allan Goodman suggested that there could be possible violations of the country’s securities laws that the agency might be thinking about examining:
“For example, should (Quadriga) have been registered as an exchange and were any securities laws breached with respect to the trading of the coins on the exchange?”
He noted that such violations could give the OSC cause to take enforcement action against the exchange, and that customer losses could potentially be included as part of any successful recovery.