QuadrigaCX to Go Offline After Many Issues

Exchange wasn't able to satiffy withdrawal request due to banking issues for months
29 January 2019   1009

The Canadian bitcoin exchange QuadrigaCX, without any prior notice, went offline on Monday evening, citing technical work on the site as a reason.

Our site is down for maintenance. We apologize for the inconvenience this may cause. We appreciate your patience, and will keep you updated as we know more. Thank you.

QuadrigaCX Team

Exchange has not left any additional comments, whose clients have been trying to withdraw funds for several months without success, but users actively comment on the events in social networks.

In addition to explainable dissatisfaction with the fact that QuadrigaCX has stopped working without warning, there are also suggestions that the company is preparing to declare bankruptcy.

Over the past few months, QuadrigaCX has experienced problems with banking services. So, in October it became known that the exchange is not able to satisfy requests for withdrawal of funds due to the blocking of accounts associated with the payment operator Costodian Inc. servicing the site.

The story was continued in November, when the Supreme Court of Ontario refused to return the exchange of $ 19.6 million from its bank accounts. These funds had to be transfered by the Canadian Imperial Bank of Commerce (CIBC) to the accounting of the High Court to establish their owners.

The indicated amount, according to the court, could belong to QuadrigaCX itself, on which its management and Costodian insisted, or 388 users which placed these funds as deposits.

The situation took an unexpected turn this month, when the stock exchange announced the sudden death of its CEO and President Gerald Cotten. QuadrigaCX has not yet provided evidence to confirm his death, but one theory is that the exchange does not have access to cold wallets, since only Cotten had access to them.

Earlier in January, representatives of the exchange notified users through social networks and letters that they had made some progress in the matter of returning funds, managing to settle disputes with CIBC.

In particular, in his letter dated January 15, temporary CEO of the company Aaron Matthews stated that the exchange expects to complete the refund process within two weeks, but this period expires today, and judging by the comments on Reddit, customers have not yet made their money have seen.

It also reported that on last Friday there should be a meeting of shareholders of the company. A new management team should have been chosen, but whether the meeting was held in reality is still unknown.

US Crypto Companies to Support TON in Case With SEC

The Blockchain Association said Telegram taken sufficient measures to ensure that the Gram token offer met SEC requirements
23 January 2020   133

The Blockchain Association, which combines companies such as Coinbase, Circle, 0x and Ripple, issued an expert opinion as part of the ongoing proceedings of the US Securities and Exchange Commission (SEC) with Telegram.

Previously, the Digital Commerce Chamber launched a similar initiative. The blockchain association, however, was more straightforward and stated that Telegram had taken sufficient measures to ensure that the Gram token offer met SEC requirements. According to members of the organization, the actions of the SEC can damage not only Telegram, but the market as a whole.

The Court should not block a long-planned, highly anticipated product launch by interfering with a contract between sophisticated private parties. Doing so would needlessly harm the investors that securities laws were designed to protect.


The Blockchain Association

The Blockchain Association notes that for many years it has not been possible for SEC to obtain clear and unambiguous guidance for conducting activities in the cryptocurrency space, while the claims of the regulator make the current situation even more ambiguous. 

The SEC’s lawsuit also raises novel questions regarding whether companies are forbidden from raising funds from sophisticated U.S. investors, under well-established regulatory provisions, to build blockchain networks.


The Blockchain Association

They cite examples of startups TurnKey Jet and Pocketful of Quarters, in respect of which the regulator recommended not to apply legal measures, adding that such litigations inevitably involve high costs and do not guarantee industry participants that they will not be prosecuted in the future.

Telegram discussed its plans with SEC staff for a year and a half, provided copious information and responded to limited feedback by adjusting the design of its transaction. Yet, at the end, the SEC has sued, and the SEC’s briefs thus far say nothing about the substance of those discussions. 


The Blockchain Association

In conclusion, the group asks the court to “reject the SEC’s arguments that the not-yet-in-existence Grams were securities at the time of the Purchase Agreements.”