Canadian cryptocurrency exchange QuadrigaCX receives creditor protection

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.