In line with a recent ‘report‘ by the native media outlet ’CBC’, renowned Canadian cryptocurrency exchange namely ‘QuadrigaCX’ has been formally declared bankrupt now.
QuadrigaCX bankruptcy was reportedly approved just today by the Nove Scotia Supreme Court Justice ‘Michael Wood’, and follows the court monitor by ‘Ernst & Young’s’ [EY] ‘recommendation‘ that it ought to be declared bankrupt earlier this month.
EY’s legal team then argued that the continuing restructuring process for the QuadrigaCX beneath the CCAA [Companies’ Creditors Arrangement Act] ought to shift to an another process underneath the BIA [Bankruptcy and Insolvency Act].
The ruling presently permits EY enhanced monitoring powers as a trustee beneath the BIA, which suggests that the company can require production of documents and testimony from witnesses.
Just today, Wood conjointly granted a so-called asset preservation order from EY, that extends to all assets managed by Jennifer Robertson — the wife of Quadriga’s late co-founder Gerald Cotten — and also the Cotten estate. The order prohibits Robertson from selling or transferring any assets.
As reported earlier, QuadrigaCX ‘filed‘ for creditor protection after Cotten’s death when it lost access to its cold wallets and corresponding keys, that apparently held the assets owed to numerous users. Presently, the exchange reportedly owes over $195 Mln to over 115,000 customers.
Even earlier in March, Quadriga’s legal representatives – law firm Miller Thomson and Cox & Palmer – ‘formed‘ a formal Committee of Affected Users of the exchange. The committee is set to assist law firms representing all the affected users within the court proceedings against QuadrigaCX.