QuadrigaCX seeks protection from creditors

Posted 01 February, 2019

QuadrigaCX, one of the leading Canadian cryptocurrency exchanges, seeks protection from creditors, the official announcement reads.

The company believes that with this protection, the exchange may become able to avoid bankruptcy. 

"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," QuadrigaCX’s notice says.

It was noted that the company also asked the court for appointment of an independent supervisor that would monitor the company processes aimed at business restructuring and settlement of financial problems. It was suggested one of the top-4 auditing companies Ernst & Young as the supervisor.

The platform revealed that it failed to find and secure the crypto reserves stored in cold wallets, so it is unable to refund the losses its customer suffered or ensure services to accept drafts from banks.

As DFID reported earlier, the exchange suspended operations and went for maintenance last week. Its users were unable to get their money back as the accounts provided by the payment provider were blocked by the court. The Supreme Court of Ontario decided not to return $19.6 million to the exchange last November, with the funds directed to the court’s accountancy by Canadian Imperial Bank of Commerce for further ownership determination. A part of this sum probably can represent deposits of the exchange's 388 users.

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