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Canadian cryptocurrency exchange QuadrigaCX loses access to its wallets

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Canadian cryptocurrency exchange QuadrigaCX loses access to its wallets
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The Canadian cryptocurrency exchange QuadrigaCX has lost control of its wallets leaving their customers worried as the troubles for the exchange continues, as indicated by a notice from QuadrigaCX’s board of directors.

Customers became anxious a few days ago when the exchange went offline citing maintenance issues, however, the recent report indicates that the trouble is deeper than it seems.

The board said that there are “significant financial issues,” brewing and hence the exchange has not been operating efficiently off late. Further legal oversight has been piled onto the exchange with the Nova Scotia Supreme Court appointing the global audit giant Ernst & Young Inc. as an independent third party to supervise the creditor protection that will take place next month.

Liquidity is also addressed by the board that is adversely affecting the exchange’s performance, with the cold wallets problem piling onto the same. The notice stated:

“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.”

QuadrigaCX will intimate its customers regarding the further proceedings after a hearing on February 5. The exchange has around $500,000 in exchange volume in different trading pairs in the past 24 hours and hence the impact will not be hard-felt on the rest of the market.



Earlier in October, QuadrigaCX had accused the Canadian Imperial Bank of Commerce [CIBC] of withholding and preventing ease of access to the exchange’s funds worth $21.6 million. CIBC froze five accounts under the name Costodian Inc, the exchange’s payment partner. The bank cited discrepancies regarding the identity of the users as the main reason for the freeze.

In November, the exchange had $26 million of its funds seized by the Ontario Superior Court of Justice on an “interpleader order” with the funds put on hold until the rightful owner of the same is determined. The two parties in question are the exchange and its payment partner, Costodian.





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Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.

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HitBTC responds to allegations of insolvency, refutes claims made by Redditors

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HitBTC responds to allegations of insolvency
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HitBTC, a Hong Kong-based exchange has been the center of accusations among users on Reddit, Twitter, and other forums. HitBTC users started complaining about issues regarding withdrawal and extensive procedures after one particular user @ProofofReserach put out a thread alleging insolvency of HitBTC.

To put an end to all the accusations, HitBTC has broken its silence with a blog post explaining their side of the story. According to HitBTC, their systems performed well during the winter of 2017-18, however, HitBTC mentioned that due to overwhelming demand for the services, they experienced bottlenecks at an operational level.

Referring to the BitcoinExchangeGuide article, HitBTC responded:



“A widely quoted article, in its entirety, is based on only 2 AML cases. One of them was initiated as part of the investigation into the December, 2018 BTCP security breach, at the request of the coin’s core team. Unfortunately, there is no clear indication of the nature of the second case that can be discerned from the article. The author of the article failed to track the deposit/withdrawal dynamics that did not uncover any irregularities. A simple block explorer or our public System Monitor would suffice for these purposes”

Additionally, referring to the altcoins being added and removed from the platform, the exchange said that they were honored to work with a diverse range of projects, however, since the crypto sphere was still nascent, there were lapses in their judgment in assessing the integration partners. With the above-mentioned prominent cases, HitBTC also addressed other topics.

@ProofofResearch replied to HitBTC’s blog:

“Is there a reason why you’re unable to tell people us where your Bitcoin storage is at? If what I published is as untrue as you claim it is, then providing a wallet address where your Bitcoin funds are stored will go a long way in *proving that*.”





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