QuadrigaCX Continues To Decline as Canadian Court Finally Steps In


Cryptocurrency exchange QuadrigaCX situation continued to worsen as time goes by, forcing a Canadian court to finally step in and placed it into administration, granting the exchange over 30-day protections against creditors claims.

The court also announced that they shall appoint financial company Ernst and Young as an independent third party monitor to the court’s administration.

As of now, the court shall oversee the exchange’s financial situation, and most likely launch a full investigation into the case, with the crypto community already coming up with various theories. Claims of the 30-year-old CEO faking his own death and hiding in India have already cropped up for example. Another crazy theory is that the co-founder Michael Patryn is actually a fake name to hide the fact that its Omar Dhanani who was convicted of fraud within the US and released during 2007.

Either way, plenty of questions will hopefully finally be answered when the court gains access to Gerald Cotten’s encrypted laptop, which has been stated to be handed over to a court-appointed monitor sometime soon.

The detailed available in the court documents,

“show QuadrigaCX had been facing liquidity issues over the past year. The Canadian Imperial Bank of Commerce [a large commercial bank] froze roughly [USD 19.6 million] of its funds held in the account of a third-party processor in January 2018.”

The company also released their own statement on Tuesday stating,

 “For the past weeks, we have worked extensively to address our liquidity issues, which include locating our very significant cryptocurrency reserves held in cold wallets required to satisfy customer cryptocurrency balances on deposit and sourcing a financial institution to accept the bank drafts being transferred to us. Unfortunately, these efforts have not been successful. Since we were unable to resolve these issues […] we did not want trading to continue on our platform. We filed for creditor protection to help resolve these matters and preserve the interests of our customers.”

While the exchange has attempted to address some of its major problems with liquidity after the announcement of their CEO’s death, who appeared to have taken access codes of over 115,000 wallets that seem to hold over $190 million USD to his death, which has rendered the wallets inaccessible for the current time.

 


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Keith Wang

Keith Wang is a writer and programmer specializing in bitcoin and blockchain technology. Keith has been a long time believer of bitcoin and blockchain technology and spends his free time following up with blockchain news. You can contact Keith at keith@cryptomenow.com

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