QuadrigaCX new revelations regarding cryptocurrency transaction. It has recently lost track of more than $ 460,000 in coins and it caused some disbelief among industry observers. The announcement of the Canadian crypto death.
Shock and QuadrogaCX new revelations
“I’m shocked (…) that such a thing could have happened,” exclaimed Manie Eagar, CEO of DigitalFutures, a Vancouver-based development consulting firm that focuses on digital currency technologies and the chain of blocks.
“Whoever takes the reins and acts as the custodian of these funds should at least have done due diligence to avoid what happened.”
The court-appointed monitor, who oversees $ 260 million in cash and cryptocurrency research for users of the QuadrigaCX platform, revealed on Tuesday that the transaction site had access, as of February 5, to $ 902,743 at Digital assets stored in online portfolios.
However, Ernst and Young reported that on February 6, a person working for QuadrigaCX “inadvertently” transferred 103 Bitcoins, valued at $ 468,675, into a “cold wallet,” so offline, which is out of reach of the company.
In the meantime, lawyers will meet shortly in a courtroom in Halifax, where a judge will decide who will represent QuadrigaCX’s creditors.
These QuadrigaxCX new revelations are certainly the first case of this kind in Canada.
The Vancouver-based trading site closed on Jan. 28, amid speculation about the sudden death of its CEO and sole director, Gerald Cotten. The 30-year-old was running his virtual enterprise, founded five years earlier, from a house north of Halifax.
According to court documents, Mr. Cotten died suddenly on December 9th while traveling in India. He was the only person with access to the digital keys needed to access various cryptocurrencies totaling $ 190 million.
Besides, the insolvent company owes an additional $ 70 million to some 115,000 of its users.
QuadrigaCX new revelations and users frustration
Transferring funds to portfolios from which they can not withdraw, this is truly breathtaking.
Users know that they do not have access to these digital wallets. And QuadrigaCX still managed to make this terrible mistake. It says a lot about the practices of this company. There is no backup plan, nothing. It sounds like Canadian crypto death.
The last selection of lawyers will be overseen by the Supreme Court Judge, Michael Wood. The case is part of a court-ordered insolvency process. It was previously initiated when the company was obtained protection from its creditors on February 5.
The purpose of the federal law is to allow insolvent companies with more than $ 5 million to continue operations while developing a creditors’ repayment plan to avoid bankruptcy.
The court ordered a 30-day stay of proceedings, to prevent any legal action against QuadrigaCX. The court should grant an extension on March 5, believe the observers.
Legal case and expectations
Tim Hill, a Halifax lawyer specializing in insolvency and debt restructuring, noted that the law firms that will be chosen as lawyers would be paid by QuadrigaCX’s parent company, Quadriga Fintech Solutions.
QuadrigaCX new revelations about financial impact are impressive. There is a real danger that there will be no money to pay for these people. This is the thought of Tim Hill, a member of BoyneClarke’s commercial litigation team and former bankruptcy registrar.
Unless they can act quickly to identify certain assets and some resources, it may be too long. People will not be paid and it will appear as the real Canadian crypto death.
Lawyers from across the country expressed interest in the case after QuadrigaCX new revelations.
Last things to know about QuadrigaCX new revelations. Most part of the real money owed to creditors comes in the form of bank drafts. Indeed the company did not make any deposit in a regular financial institution, as the usual banks remain reluctant to deal with cryptocurrency companies.
It’s going to be a problem for the users, the crypto industry and the impact on the digital market. But at some point, the Justice Court will have to participate and the State will face this Canadian crypto death and to QuadrigaCX new revelations.