How did QuadrigaCX work? A guide to complicated crypto trading

This is an example of how some users funded their accounts and traded on QuadrigaCX, as outlined by Canadian Imperial Bank of Commerce in a court filing. There was not a uniform way of getting set up – notably, investors had sent wire transfers to a variety of companies in several countries – so details below were not relevant to all investors.

STEP 1

After setting up an account, a user would send a wire transfer to a Costodian account at CIBC. Costodian is a company whose "sole purpose," according to CIBC, was to hold funds deposited by investors.

STEP 2

Billerfy, a payments processor, provided Quadriga with the investor's ID and deposit amount. (Billerfy and Costodian share an owner.)

STEP 3

Quadriga credited an investor's online wallet with "QuadrigaCX Bucks," which could be used to buy and sell cryptocurrencies, such as bitcoin, on the Quadriga exchange.

QuadrigaCX Bucks

STEP 4

To cash out, an investor would submit a withdrawal request to Quadriga, which forwarded the request to Billerfy.

STEP 5

Billerfy aggregated the requests and withdrew from Costodian accounts at CIBC to an account held by Billerfy at another financial institution.

STEP 6

Billerfy then transferred funds to the investor.

FINAL WORD

Long before Quadriga was granted creditor protection, investors had complained of difficulties withdrawing their funds. Today, they are collectively owed $250-million.

This is an example of how some users funded their accounts and traded on QuadrigaCX, as outlined by Canadian Imperial Bank of Commerce in a court filing. There was not a uniform way of getting set up – notably, investors had sent wire transfers to a variety of companies in several countries – so details below were not relevant to all investors.

STEP 1

After setting up an account, a user would send a wire transfer to a Costodian account at CIBC. Costodian is a company whose "sole purpose," according to CIBC, was to hold funds deposited by investors.

STEP 2

Billerfy, a payments processor, provided Quadriga with the investor's ID and deposit amount. (Billerfy and Costodian share an owner.)

STEP 3

Quadriga credited an investor's online wallet with "QuadrigaCX Bucks," which could be used to buy and sell cryptocurrencies, such as bitcoin, on the Quadriga exchange.

QuadrigaCX Bucks

STEP 4

To cash out, an investor would submit a withdrawal request to Quadriga, which forwarded the request to Billerfy.

STEP 5

Billerfy aggregated the requests and withdrew from Costodian accounts at CIBC to an account held by Billerfy at another financial institution.

STEP 6

Billerfy then transferred funds to the investor.

FINAL WORD

Long before Quadriga was granted creditor protection, investors had complained of difficulties withdrawing their funds. Today, they are collectively owed $250-million.

This is an example of how some users funded their accounts and traded on QuadrigaCX, as outlined by Canadian Imperial Bank of Commerce in a court filing. There was not a uniform way of getting set up – notably, investors had sent wire transfers to a variety of companies in several countries – so details below were not relevant to all investors.

STEP 1

After setting up an account, a user would send a wire transfer to a Costodian account at CIBC. Costodian is a company whose "sole purpose," according to CIBC, was to hold funds deposited by investors.

STEP 2

Billerfy, a payments processor, provided Quadriga with the investor's ID and deposit amount. (Billerfy and Costodian share an owner.)

STEP 3

Quadriga credited an investor's online wallet with "QuadrigaCX Bucks," which could be used to buy and sell cryptocurrencies, such as bitcoin, on the Quadriga exchange.

STEP 4

To cash out, an investor would submit a withdrawal request to Quadriga, which forwarded the request to Billerfy.

STEP 5

Billerfy aggregated the requests and withdrew from Costodian accounts at CIBC to an account held by Billerfy at another financial institution.

STEP 6

Billerfy then transferred funds to the investor.

FINAL WORD

Long before Quadriga was granted creditor protection, investors had complained of difficulties withdrawing their funds. Today, they are collectively owed $250-million.