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QuadrigaCX Users’ Law Firm Launches Blockchain Analytics Investigation

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Canadian law firm Miller Thomson has hired consultancy firm Kroll to perform blockchain analytics work in relation to the ongoing dissolution of QuadrigaCX, the exchange which failed last year after its CEO Gerald Cotten was reported to have died. 

The firm, which represents the now-former users of Quadriga pursuant to a court order, announced the move in a notice to creditors Friday, adding that Kroll would work “with its strategic partner Coinfirm” to analyze a subset of transaction data. Miller Thomson began looking for an analytics firm at the beginning of the year.

“Since being founded in early 2016, Coinfirm has created a powerful analytics engine for blockchain tracing exercises,” the update said. “The Kroll/Coinfirm partnership will use a combination of professionals as needed with experience in cryptocurrency, asset tracing/searching, asset recovery, fraud investigations, and data analytics.”

The law firm will not share further details “due to confidentiality,” the document said, though it said Miller Thomson arrived at the decision in conjunction with the Official Committee, a group of users appointed by a Canadian court to act as a sort of liaison between the law firm and the broader group of former customers.

Miller Thomson was likewise appointed to represent Quadriga’s former customers last year, alongside Ernst and Young (EY), which is acting as a bankruptcy trustee and has been tasked with identifying and securing any of Quadriga’s funds to disburse back to its former customers. So far, about $46 million CAD (around $35 million U.S.) has been recovered, according to the Ontario Securities Commission, far short of the nearly $200 million customers are supposedly owed.

Kroll will receive a fee of $50,000 CAD ($38,000 U.S.) and is indemnified against any potential lawsuit up to $150,000 CAD ($114,000 U.S.).

Crypto Capital

Miller Thomson did not provide any other information about what users could expect in terms of fund distributions. The law firm did update Quadriga’s users about its research into Crypto Capital however, announcing it had “forwarded the information” it received from individuals to EY and found that Crypto Capital does not currently possess any of Quadriga’s holdings.

“Representative Counsel understands that based on the Trustee’s review of the information  provided by Affected Users and information in its possession, there is currently insufficient  evidence to establish that Crypto Capital owed any funds to Quadriga as of the date of  bankruptcy,” the update said.

The update caps a brief investigation which began in January of this year, when Miller Thomson asked Quadriga’s users to share any information they had about the Panama-registered “shadow bank,” whose operators currently face a host of charges in the U.S. (one, Reginald Fowler, was arrested and is now awaiting trial).

Read more: 17,000 People Have Filed Claims for Refunds From QuadrigaCX, Auditor EY Says

At the time, Miller Thomson said it was looking into whether the payment processor held any of Quadriga’s funds due to the fact that Quadriga apparently maintained no corporate or accounting records, and therefore EY could not determine which companies held its funds.

While Quadriga’s customers may be hoping for a prompt payout of funds, it does not appear the legal process, which has stretched out 18 months so far, will end anytime soon. Miller Thomson noted it could not begin the process of disbursing funds until EY has finalized its record of who is owed what and the Canada Revenue Agency has completed its audit of the exchange.

“The most material impact on the speed of distribution will be the CRA’s audit of Quadriga’s tax liabilities,” Friday’s update said.

It does not currently have a timeline for when this audit might be completed.

Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.



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Snap Stock Up 16% as Q2 2021 Earnings Beat Analyst Expectations

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Snap stock has risen approximately 184.94%, and 25.76% in the past year and seven months.

Snap Inc (NYSE: SNAP) stock traded 16.31% higher in today’s premarket around $73.24. The notable spike has been directly attributed to the second-quarter earnings results that beat analysts’ expectations. Notably, Snap reported revenue of $982 million in Q2 versus $846 million expected by analysts according to a survey by Refinitiv.

Additionally, the company recorded adjusted earnings per share of 10 cents versus 1 cent loss forecasted by analysts. During the second quarter, Snap’s average revenue per user (ARPU) was $3.35 against $2.92 expected by analysts according to a survey conducted by Refinitiv. Global daily active users (DAUs) hit 293 million users versus 290.3 million according to a survey conducted by StreetAccount.

Snap stock has risen approximately 184.94%, and 25.76% in the past year and seven months. However, they have dropped approximately 6.95% in the past month according to market analytics provided by MarketWatch.

Snap Stock and Company’s Q2 2021 Earnings

On the positive side, Snap noted that the iOS 14.5 update did not make severe changes to its operations as earlier forecasted. Partly due to the late rollout of iOS 14.5 by Apple’s developers.

Jeremi Gorman, Snap’s chief business officer added that the slow adoption of Apple’s software update also significantly contributed. “This has given us more time with advertisers to navigate the transition but also means the effects of these changes will come later than we initially expected,” Gorman said.

One of the key highlights from the Snap second-quarter report was the 53% decline in a net loss to $152 million from $326 million a year ago.

Forward, the company is weighing on different market outlooks, particularly Covid-19 and the rollout of the vaccine. On a year-over-year basis, Snap expects its revenue to grow by 58% to 60% during the third quarter. Additionally, the company said it anticipates hitting approximately 301 million daily active users (DAUs) in the third quarter.

This range reflects our best current estimate of the potential impact of anticipated disruptions associated with the iOS platform changes,” Snap Chief Financial Officer Derek Andersen said in his prepared remarks.

The foreseeable future remains uncertain for Snap management largely due to a resurgence of COVID-19 cases. As a result, the company said it will be operating in an uncertain environment until the end of the year.

The company has a reported market valuation of approximately $99.58 billion as of today with 1.32 billion outstanding shares. Having been rated by 38 Wall Street analysts, MarketWatch found out that Snap stock received an average of Over rating.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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Binance US Pursuing Plans to Go Public, Opts for IPO amidst Regulatory Crackdown

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Binance US will be competing for a public spot proceeding despite facing allegations from global regulators.

Binance US which is a cryptocurrency exchange operating in the American market will opt for an IPO way to go public. The firm is currently in the process of navigating heavy regulatory concerns and crackdowns. Binance CEO Changpeng Zhao has commented on the possibility of the firm listing on an IPO and communicated possible plans of the company concerning regulatory requirements and protocols.

The CEO further highlighted how the company is still embroiled in regulatory trouble with central regulators and had taken accountability for the same. However, Zhao has been confident in making Binance US seek a public spot through the IPO and expressed his decision to accelerate compliance efforts to work in sync with the guidelines to safeguard the company’s interest and stake.

Binance US Opts for a Strategic IPO Listing

Binance US will be competing for a public spot proceeding as a separate company that seeks branding from the global exchange Binance. The company will be taking a fresh initiative to go public in the upcoming months.

It is to be noted that  Binance which is the leading cryptocurrency exchange was facing allegations from global regulators that involve claims such as the company being implicated in illegal trading in the USA. The concerning matter was later investigated by the States Department of Justice and the Internal Revenue Service. Later on, the company was approached by the US Commodity Futures Trading Commission on similar grounds.

Binance CEO Changpeng Zhang has asserted that the company is surely battling regulatory issues and interventions at the moment but is confident enough to accelerate the work operations by shifting the company into the financial domain from a previous tech setup.

The CEO has further admitted that they might encounter troubles with the regulators but this will never disregard the company’s vision to go public one day. Binance US is now pursuing ways to opt for a traditional initial public offering route to seek credible transition.

In a virtual blockchain summit called REDeFINE Tomorrow 2021, Zhao was seen communicating his plans regarding Binance’s prospects and strategies as well the company’s new goal that involves an IPO listing. Zhao later restated that the company will be expediting its compliance efforts that will also include hiring former regulators to speed things up.

In the summit held on Friday, Zhao was seen admitting the fact that the regulatory issue that the firm is currently facing will be mitigated very soon and the compliance efforts will be accelerated to localize communication in a structured manner.

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Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.



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TSLA Stock Up 2% Yesterday, Musk Anounces Opening Tesla Supercharger to All EVs

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Tesla is planning to make Superchargers that are accessible by all vehicles in most of the countries.

The founder and CEO of Tesla Inc (NASDAQ: TSLA) Elon Musk announced that the company’s chain of fast-charging stations for its electric automobiles, aka Tesla’s Supercharger network, will commence serving other brands of electric vehicles from this year.

Meanwhile, Tesla stock went up by 2% yesterday, reaching $660.50. Today in the pre-market, the stock lost 0.23%.

The tweet was posted on Tuesday by the business magnate. This announcement follows years of gossip on the development of Tesla charging stations that are compliant with all electric vehicles.

Despite the tall claims by Musk, there has, as of now, not been any communication on the details about this venture. For starters, where will the DC fast-charging stations be set up still remains a question. However, according to the Billionaire, Tesla is planning to make Superchargers that are accessible by all vehicles in most of the countries.

In recent times, the billionaire has communicated the idea of introducing Superchargers to other EVs and collaborating on the technology together. In an interview in 2014, Musk suggested contributing and curating designs to create a mainstream blueprint that can be exchanged across industries.

In a gathering in 2018, Tesla CEO had, however, answered a query during an earnings call that the Supercharger Network is not anomalous to a ‘walled garden’. By this, the billionaire wanted to suggest that different brands and designs of EVs might have different charging stations that are compatible.

The most critical marketing strategy for Tesla Electric vehicles has been the fact that the company has exclusive charging stations. This herculean advantage set the company apart from its competitors in battery vehicles. The Tesla charging network is accessible to operators of Tesla vehicles without any membership fees. The company keeps a tab of the charging per minute or kilowatt-hour.

The company’s new level 3 Charging Stations have not been opened to the general public, and are available only to the owners. The connectors used in powering the vehicles can be plugged into Tesla vehicles only, enabling less crowd and higher accessibility to the Tesla customers.

Several US companies have discussed and struggled to provide charging stations that cater to battery vehicles from different brands. The companies include ChargePoint, Electrify America, Sema, and many others. Tesla’s website claims that the company currently manages more than 25,00 charging stations across the globe.

In December 2020, Musk mentioned his company’s plan to create Supercharging stations for all electric automobiles. In a conversation with YouTuber MKBHD, Marques Brownlee, the billionaire said that other Brands of EVs were “low-key” on the lookout for access to Tesla’s Superchargers and that the apparatus was already being made available to other electric cars.

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Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.





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