Canadian cryptocurrency exchange QuadrigaCX receives creditor protection
|- QuadrigaCX has five days to compensate the customers.
- EY will oversee the company’s activity during this period.
QuadrigaCX lost access to its cold wallet with digital assets worth over $190M locked there as the company’s CEO suddenly died in India and took the private keys with him to the better world.
Read details of QuadrigaCX saga here.
In the most recent development, the embittered company received creditor protection under the Companies’ Creditors Arrangement Act (CCAA). The decision was made by a Canadian court and, according to a financial crimes attorney Christine Duhaim, came as no surprise.
The judge appointed Earnst&Young to monitor the ongoings at QuadrigaCX within the next few months. The experts from EY will help the company to recover assets and compensate $90,000 to 115,000 customers that lost their money to QuadrigaCX debacle. They proposed to focus on finding and accessing reserves in clod storage if any.
Michael J. Wood who granted protection commented:
“I’m satisfied that the order under the CCAA ought to be issued today. I’m going to issue the order effective today.”
The company has only five days to return what they owe to the customers, in accordance with the court’s ruling.
While the death of QuadrigaCX’CEO was confirmed by Indian authorities, the cryptocurrency community suspects that the exchange has opted to an exit scam as the story with lost keys looks suspicious.
Read Twitter users comments on the matter.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.