Home News Exchange Canadian Crypto Exchange QuadrigaCX Declares Bankruptcy

Canadian Crypto Exchange QuadrigaCX Declares Bankruptcy

April 09, 2019 12:43
|
EY Logo
Share with your friends

After months and months of uncertainty and controversies, Canadian-based cryptocurrency exchange, QuadrigaCX declared bankruptcy, on the advice of its court-mandated monitor, Ernst and Young (EY).

According to local news daily, CBC, the exchange was shut down, after it failed to recover the funds, as per the Supreme Court of Nova Scotia orders. At the time, Crypto-News India, had reported that a Canadian judge had given a 45-day extension to the exchange to trace the missing funds which were estimated to be around $140 million.

News portal, CoinDesk had stated that Judge Michael Wood, of the Nova Scotia Supreme Court, said he was satisfied that a stay of proceedings first granted a month ago should be extended by just under 45 days, with the next hearing scheduled for April 18. Creditors cannot sue the exchange until the stay expires or is lifted.

Maurice Chiasson of Canadian law firm Stewart McKelvey, which was representing the exchange said, “We owe it to everyone in the process to go on as long as is reasonable.”

News portal CoinTelegraph reported that the move was approved by Nova Scotia Supreme Court Justice Michael Wood, and follows the court monitor Ernst & Young’s (EY) recommendation that it should be declared bankrupt earlier this month.

The portal further revealed that EY’s legal team argued that the ongoing restructuring process for QuadrigaCX under the Companies’ Creditors Arrangement Act (CCAA) should shift to an alternative process under the Bankruptcy and Insolvency Act (BIA).

The ruling now grants EY enhanced investigative powers as a trustee under the BIA, which means the company can require production of documents and testimony from witnesses.

Apart from that, Wood also granted a so-called asset preservation order from EY, which extends to all assets held by Jennifer Robertson — the wife of Quadriga’s late co-founder Gerald Cotten — and the Cotten estate. The order prohibits Robertson from selling, removing and transferring any assets.

Liked what you read? Join us on Telegram

LEAVE A REPLY

Please enter your comment!
Please enter your name here