Canadian tax authorities are interested in the activities of the QuadrigaCX cryptocurrency exchange, which ceased to exist last year after the death of its sole founder.
The regulator suspects that the management of QuadrigaCX could conceal a part of the income and thus pay an incomplete amount of taxes. According to the trust manager of the exchange, the agency asked for tax reports for the past year.
Previously, the company attracted the attention of the FBI, and subsequently the authorities of Australia and the royal gendarmerie of Canada, which performs the functions of the provincial police of the country, joined the investigation.
QuadrigaCX has ceased operations under mysterious circumstances. According to official information, the founder of the platform, Gerald Cotten, suddenly died in December last year, and on January 28, the exchange went offline. As a result, QuadrigaCX owed customers millions of dollars in cryptocurrency, and the court appointed the audit company Ernst & Young to manage the affairs of the exchange.
On August 15, Canadian tax officials sent a notification to the trustee stating that the exchange was being audited from October 1, 2015 to September 30, 2018. The auditor called the audit a “significant event.”
“The trustee plans to discuss the conditions for the disclosure of information and go to court if necessary to obtain further guidance,” company representatives said.
The tax service decided not to comment on this situation, but noted that failure to provide the necessary information is a violation of the law.
Earlier, Ernst & Young reported that the owner of the exchange stored cryptocurrencies of customers in a personal wallet and transferred them to third-party exchanges, while sometimes using them as collateral for transactions.
Representatives of the company added that many requests from law enforcement agencies and regulators affect the final amount of payments to creditors, but there are currently no legal grounds to refuse to fulfill the requirements.