QuardigaCX, a Canadian based company, recently stated that they are unable to find their cold storage wallets. According to a notice published by the company through their website, the crypto exchange stated that they have filed an application that speaks for safeguarding them under the Companies’ Creditors Arrangement Act (CCAA). The CCCA is a Canadian law that deals with bankruptcies in Canada.
The banks and the trusts are exempt from CCAA protections and as the exchange is not qualified either as a bank nor as a Trust, they win out of the situation.
The exchange, in a notice on their website, stated that: “An application for creditor protection in accordance with the Companies’ Creditors Arrangement Act (CCAA) was filed today in the Nova Scotia Supreme Court to allow us the opportunity to address the significant financial issues that have affected our ability to serve our customers. The Court is being asked at a preliminary hearing on Tuesday, February 5 to appoint a monitor, Ernst & Young Inc., as an independent third party to oversee these proceedings.
It further added that “For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts have not been successful. Further updates will be issued after the hearing.”
A couple of weeks back, on January 14, the exchange announced that their founder and CEO, Gerald Cotten was no more. The company announced the news on Twitter stating “Please see our statement regarding the sudden passing of our @QuadrigaCoinEx founder and CEO, Gerry Cotten. A visionary leader who transformed the lives of those around him, he will be greatly missed.”
The struggle time for QuadrigaCX started from last October when a bank has ceased their funds. A writer had then stated “A court document quotes the trading platform urging the court not to yield to what it described as unverified and invidious conjecture that the transactions are questionable. Margaret Waddell, Quadriga’s lawyer claims the judge has reserved his decision in the hearing on the case. The CIBC on its part has refused to make any comments on the case.”
The exchange was the largest exchange in Canada in terms of their volume until recently when the company started to tumble. The company’s public notices have revealed many untold stories. However, this is not the first Canadian Exchange who saw a sudden change in fortunes, Earlier MapleChange, another Canadian exchange, had also faced similar issues.