The bankruptcy trustee for failed Canadian cryptocurrency exchange QuadrigaCX is now free to hand over a trove of documents—including personal information of the exchange’s users—to the Canadian tax authority.
On Tuesday, Judge Glenn Hainey of the Ontario Court of Justice issued an order authorizing EY to comply with the Canada Revenue Agency’s production demand request. Here is the order. And here is Hainey’s handwritten signed endorsement. He apparently heard the motion over teleconference due to the pandemic.
An important aspect of the order is that it also frees Miller Thomson, the law firm representing Quadriga’s creditors, and the Committee for Affected Users, who speak on behalf of all of the creditors, from any liability.
EY will now be handing over 750,000 documents to the CRA. Many of those documents contain personal information on the 115,000 users who were active on the exchange at the time of its collapse in January 2019.
Quadriga’s creditors are not happy about this. Losing control of their personal data is their worst nightmare. But as I spelled in a previous post, the cost for the creditors to fight any of this would have been prohibitive. It also would have further delayed them getting back any of their already dwindling pool of recovered funds.