Creditor Protection in Nova Scotia Filed By Canadian Cryptocurrency Exchange QuadrigaCX

After months and months of financial and legal difficulties, QuadrigaCX, the major crypto-valuation mall in Canada, has filed a claim to protect the creditor, according to a statement released on January 31.

According to a statement published on the stock exchange website, the company has filed a petition for creditors in New Scotland for the Supreme Court by the CCAA. According to PwC Canada, "CCAA provides the company with the ability to avoid bankruptcy and allow creditors to get some form of payment for the corporation's debts."

The statement also states that on February 5, the court will be called upon to appoint an audit firm "Big Four," Ernst & Young, as the independent third party to follow suit.

This submission will allegedly offer QuadirgaCX "an opportunity to address significant financial issues that have affected our ability to serve our customers." The company said the attempts to "find and secure our very large foreign currency reserve crypts in cold stores" were unsuccessful. As such, they were not able to settle customer balances or receive services from a financial institution to accept bank drafts.

In October 2018, the exchange was $ 19.6 million with the Canadian Imperial Bank of Commerce (CIBC). According to the Canadian Diary of the Globe and the Mail, QuadrigaCX has since January, when CIBC froze five accounts of Jose Reyes, the stock owner, had difficulty accessing $ 16.3 million of its funds. And Processor Payments, Costodian Inc.

The CIBC subsequently requested the Ontario Supreme Court to retain funds and determine whether they belonged to Custodian, the stock exchange or the users who had deposited the funds. The court ruled in favor of the bank, saying the asset owner was not clear. The CIBC then had to transfer the funds to the Accountant High Court to identify the owner.

The apparent loss of its founder, Gerry Cotten, further complicates the exchange situation. After the release of Cotten's death, some users have asked for evidence of death. Some even gave the assertion that freezers stored in refrigerators can not access exchange because keys are known only to Cotten.

Platform users would not be able to access or withdraw their funds for months. Some have speculated that the platform would become insolvent earlier this week when it appears that QuadrigaCX was ready for maintenance. The commentator published on Reddit: "They will declare insolvency because of the inability to find the appropriate bank to host the account and facilitate the transfer."


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