QuadrigaCX officially placed in bankruptcy
- Nova Source Supreme Court Judge Michael Wood made the bankruptcy ruling official this Monday.
- Judge Wood also froze a majority of CEO Gerald Cotten’s widow’s assets.
Infamous Canadian exchange, QuadrigaCX, will officially transition into bankruptcy in the coming days. Nova Source Supreme Court Judge Michael Wood made the ruling official this Monday. QuadrigaCX filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on January 31st. Back then, the exchange stated that it couldn’t $136 million in cryptocurrencies and needed assistance reclaiming another $53 million in fiat held by third-party payment processors.
Their court-appointed monitor, Ernst & Young (EY) had earlier published a report where they advised the troubled exchange to file for bankruptcy. The report outlined that the victims of the QuadrigaCX debacle will benefit if the company transitions from the ongoing restructuring process to a bankruptcy filing under the Bankruptcy and Insolvency Act (BIA).
Deceased QuadrigaCX CEO Gerald Cotten’s widow, Jennifer Robertson, also got her assets frozen by Judge Wood. These include the assets held by her firms Robertson Nova Consulting Inc., Robertson Nova Property Management Inc., and the Seaglass Trust. Robertson will have the ability to send or receive funds through her personal and corporate accounts with the Bank of Nova Scotia. EY has the right to oversee all activities regarding those two accounts.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
