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How trading worked on QuadrigaCX

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.

Investor

Costodian

STEP 2

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

Billerfy

Quadriga

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

Investor

Online wallet

Quadriga

STEP 4

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

Quadriga

Investor

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.

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.

MURAT YUKSELIR AND MATT LUNDY /

THE GLOBE AND MAIL

How trading worked on QuadrigaCX

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.

Investor

Costodian

STEP 2

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

Billerfy

Quadriga

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

Investor

Online wallet

Quadriga

STEP 4

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

Quadriga

Investor

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.

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.

MURAT YUKSELIR AND MATT LUNDY / THE GLOBE AND MAIL

How trading worked on QuadrigaCX

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.)

Investor

Costodian

Billerfy

Quadriga

Online wallet

QuadrigaCX Bucks

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.

Quadriga

Investor

Billerfy

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.

MURAT YUKSELIR AND MATT LUNDY / THE GLOBE AND MAIL

Editor’s note: An earlier version of this story said about $25-million is held in Costodian accounts frozen by CIBC. In fact, those funds were eventually released to Costodian by court order. This story has been updated to remove that reference.

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