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Globe says OSC gets complaints about 3iQ liquidation

2024-12-23 06:29 ET - In the News

Also In the News (C-BTCQ) 3iQ Bitcoin ETF

The Globe and Mail reports in its Monday edition that a group of early cryptocurrency investors in Canada's first retail bitcoin investment fund have filed a complaint with the Ontario Securities Commission, claiming fund manager 3iQ Corp. violated oversight rules when a portfolio manager moved the fund's digital assets into cash just before a major bitcoin rally this fall. The Globe's Clare O'Hara writes that investors allege 3iQ fund manager Frederick Pye liquidated the holdings in the company's Global Cryptoasset Fund (QGCF) and moved the proceeds into cash in early October. Shortly afterward, on Oct. 10, the company issued a letter advising unitholders that the crypto fund would be terminated on Nov. 11. The letter did not inform investors that there had already been a change in the holdings of digital assets at that time. 3iQ's chief executive officer, Pascal St. Jean, wrote in the Oct. 10 fund termination letter that investors could redeem their money any time before the close of business at 4 p.m. on Nov 11. However, several investors told The Globe they were not given adequate notice -- or in some cases not notified at all -- to be able to move their funds into other digital asset funds before the liquidation.

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