QuadrigaCX, a Canadian cryptoexchange users of which aren't able to withdraw funds for few month now, appealed to the Supreme Court of Nova Scotia to provide protection against creditors' claims.
An application for creditor protection in accordance with the Companies' Creditors Arrangement Act (CCAA) was filed today in the Nova Scotia Supreme Court to allow us the opportunity to address the significant financial issues that have affected our ability to serve our customers. The Court is being asked at a preliminary hearing on Tuesday February 5 to appoint a monitor, Ernst & Young Inc., as an independent third party to oversee these proceedings.
For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts have not been successful. Further updates will be issued after the hearing.
Message from QuadrigaCX Board of Directors
Note that in the past month, the exchange announced the sudden death of its CEO and President Gerald Cotten. QuadrigaCX has not yet provided evidence to confirm his death. One theory is that the exchange does not have access to cold wallets, since it was only at Kotten.