Canada-based QuardigaCX exchange revealed that they can not find their cold storage wallets. In a very notice disclosed on its official ‘web-site‘, the crypto exchange stated they filed an application protection underneath CCAA [Companies Creditors Arrangement Act], a Canadian law that deals with bankruptcies within Canada.
“For the past few weeks, we’ve worked extensively to handle our liquidity problems, that embody making an attempt to find and secure our very important cryptocurrency reserves held in cold wallets, which are needed to satisfy client cryptocurrency balances on deposit, moreover as sourcing a financial organisation to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts haven’t been successful. Additional updates are issued after the hearing.”
The QuardigaCX exchange wins out by not qualifying as a bank neither a trust, both of which are exempted from CCAA protections.
QuardigaCX Exchange Facing Several Issues
Earlier on 14th Jan., the exchange ‘proclaimed‘ the death of its founder and chief executive officer named ‘Gerald Cotten’.
QuardigaCX exchange began having issues from Oct. last year, once a bank froze its funds. As CCN’s ‘David Hundeyin’ added at the time stating:
“A court document quotes that the trading platform urging the court to not yield to what it represented as un-approved and invidious conjecture that the transactions are questionable. Margaret Waddell, QuardigaCX lawyer claimed that the judge has reserved his decision within the hearing on the case. The CIBC on its behalf refused to make any additional comments on the case.”
QuardigaCX is the largest crypto exchange in Canada by daily transaction volumes until its sudden fall after its recent fall. The company’s public notices leave several details out. They’re not the primary Canadian exchange within Canada to suddenly face issues. ‘MapleChange exchange‘ is an another notable example.