QuadrigaCX: Former lawyer explains how it went "down a path of lawlessness"

29 Mar, 2019
by David Robb
Opinion
QuadrigaCX: Former lawyer explains how it went down a path of lawlessness

As the QuadrigaCX case drags on with no clear end in sight, a former insider has shared some details on the history of the exchange. Lawyer Christine Duhaime, who was hired by QuadrigaCX as a regulatory attorney, wrote in CoinDesk about how it gradually shifted towards lawlessness.

Duhaime explained that she wanted to dispel some of the myths surrounding QuadrigaCX, as well as giving potentially important information about how the company progresse and took some questionable steps later in its evolution. 

Despite its current reputation for being a typical shady crypto company, QuadrigaCX apparently started out with a mission to be as legitimate as possible, making extensive financial records and audits. When the platform launched back in 2015, Duhaime says that it was "pretty much unheard-of for a digital currency exchange to have an auditor and to prepare audited financial statements that it made available to the public. It was more transparent than many exchanges today."

Read more: QuadrigaCX: creditors committee includes former Mt. Gox userSurviving co-founder of QuadrigaCX has complex criminal past

QuadrigaCX was later split up into four different companies, shortly before Duhaime's law firm was retained, and there were a number of new shareholders involved with the business. Around this time, she believes that "the whole QuadrigaCX team came to believe that the company may have unwittingly become involved in a Vancouver pump-and-dump scheme...QuadrigaCX was run by tech geeks, who were competitive, ambitious and smart but who were unfamiliar with the capital markets ecosystem in Vancouver".

After the law firm's contract was terminated in early 2016, Duhaime claims that "Mr. Cotten solely took over QuadrigaCX and operated the exchange as if it had no investors, no shareholders, no regulatory agencies and no law that applied to it...I never spoke with him after that day". Her firm is now one of the main creditors in the court case, owed around $100,000.

Read more: The QuadrigaCX timeline: as it happened4 cryptocurrency exchanges closed in 2019: what happened?

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Read more about: QuadrigaCX

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