QuadrigaCX EntersBankruptcy Proceedings
Canadian Cryptocurrency firm QuadrigaCX filed its bankruptcy application in a Nova Scotia Court this week in a bid to bring the three-month saga to its next stage after claiming that the death of its CEO left a US 260 million debt.
This means that the court order giving the legal group Ernst and Young will come into action in an attempt to recoup the funds owed to 115,000 users who have been left with no access to their money, although this won’t be an easy process as the company was discovered to have no real assets.
After the death of 30-year-old CEO Gerald Cotten in India, it was revealed he was the only person who knew the encrypted passcodes needed to access USD 190 million in cryptocurrency locked in offline digital wallets.
The situation has been further confused as it is now known that the deceased mixed his personal and corporate finances and company funds had been used to buy assets which had no connection with Quadriga. The current court order prohibits Cotten’s widow Jennifer Robertson in accessing any Quadriga assets but she is allowed access to living expenses through two private bank accounts overseen by the court.
It is thought that a sum of about USD 70 million in cash is still owed to Quadriga clients although the funds are mostly in third-party accounts and payment processor banking. This adds to the complexity of finding a solution for the company’s former clients who continue to spread rumors on social media in the absence of any concrete information as to the whereabouts of their funds.
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