The Supreme Court of the Canadian province of Nova Scotia represented by Judge Michael Wood ordered the QuadrigaCX cryptocurrency exchange to begin bankruptcy in the coming days. Wood, based on data from Ernst&Young auditor, stressed that restoring and restructuring a business is not the best option, CoinDesk reports.
It should be noted that in the framework of the bankruptcy procedure, E&Y will become the trustee of the exchange, it will receive more powers in the context of investigating the loss of user funds and the ability to sell assets held by the business to cover the losses of creditors.
At the same time, the mode of protection against creditors' claims will last at least until April 18 - until the next court hearing.
E&Y will also monitor the bank account activity of the widow of QuadrigaCX founder Gerald Kotten, since the audit firm suggests that business funds could be misused.
Earlier, E&Y could not detect 26,000 BTC on the cold wallets of the Canadian Bitcoin exchange.