The Cult Queen of Canada from Uncover S12: "A Death in Cryptoland" E3: Cracks in the Empire
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Dec 11, 2021 Gerald Cotten and Michael Patryn launch QuadrigaCX, a cryptocurrency exchange, but encounter problems with banks, software bugs, and delayed payments. Patryn faces rumors of a criminal past. The podcast explores the origins of Quadriga, financial struggles, and suspicious activity involving large sums of money.
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Audit Lapses And Mocking Texts
- FinTrac registration lapsed and an auditor's visit found no significant Canadian-US conversions to inspect.
- Cotton's texts mocked the young auditor and he continued business without renewing compliance.
Banking Shortages Forced Risky Workarounds
- Banks refused direct relationships with crypto firms, forcing Quadriga to route customer deposits through third‑party payment processors.
- Those workarounds obscured ownership of funds and increased systemic fragility.
Bank Freeze On Processor Accounts
- CIBC froze payment processor accounts after spotting over CA$60 million flow and some funds diverted into personal accounts.
- The freeze seized over CA$26 million that Quadriga relied on for withdrawals.