In its latest submission to the Supreme Court of Nova Scotia, EY says it ‘is aware of at least four independent active law enforcement or regulator reviews in progress’ over the failure of Canadian crypto exchange QuadrigaCX.
The filing said EY, in its role as Trustee-in-bankruptcy, ‘has become involved in significant discussions with certain law enforcement and regulatory officials’.
EY added that it ‘has received a formal request for documents and data from the RCMP Financial Crime Division in Milton, Ontario’ and has been in communication with the RCMP and expects ‘Other agency requests may subsequently materialise’ noting that: “At least one of the current requests is subject to a confidentiality restriction as to the fact of or details of the request.”
Both the FBI and an Australian agency are looking into the collapse of QuadrigaCX.
The submission provides limited information on the investigations, saying: “…as a result of the confidentiality and non-disclosure restrictions inherent in these processes, the Trustee is unable to share details with and obtain approval of its activities from the Inspectors and therefore will require ongoing direction from a court. In addition, given the complexity of the requests made or anticipated to be made of the Trustee, it is expected that multiple court attendances will be required to obtain assistance with these issues and provide direction to the Trustee.”
EY is requesting a change in jurisdiction from Nova Scotia to Ontario, suggesting that it would reduce costs and streamline the bankruptcy process. A hearing has been set for 10 September for a judge to review the motion to move the proceedings.