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QuadrigaCX granted a 45-day stay on proceedings by Canadian Court

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QuadrigaCX granted a 45-day stay on proceeding by Canadian Court
Source: Pixabay

The QuadrigaCX saga is far from over, but the latest development has brought some relief for the controversial exchange.

A Canadian court granted QuadrigaCX a 45-day extension to recover the missing crypto assets which accounted for nearly $190 million. The next hearing is scheduled for April 18th, before which the creditors cannot charge the exchange legally. The company had filed for creditor protection at the end of January this year and has been under protection since February 5th.

The 45-day reprieve was rendered by the Nova Scotia Supreme Court Justice, Michael Wood. During the hearing, the Court granted Ernst & Young [EY], the financial audit giant access to the company’s data stored on the cloud through Amazon Web Services [AWS]. Stikeman Elliott was appointed to represent the audit firm to monitor the crypto exchange.

Wood further appointed a Chief Restructuring Officer, Peter Wedlake, Senior Vice President at Grant Thornton, to work under the direction of E&Y.

QuadrigaCX reportedly owed an additional amount of nearly $70 million funds to its users that are held by third-party payment agencies, adding to the customers’ woes. According to reports by E&Y, the exchange’s cold wallets were empty since April 2018. Following this report, E&Y shifted its focus to the hot wallets.

The latest twist in the plot was reported by ZeroNonCense, a cryptocurrency research and consulting platform. According to the platform, a significant amount of Ethereum [ETH] was deposited to Kraken, Bitfinex, and Poloniex from QuadrigaCX.

Recently, the San Francisco-headquartered exchange, Kraken, promised a reward of $100,000 to anyone who provided information regarding the exchange’s missing funds.

Since the sudden death of CEO Gerald Cotten, the Vancouver-based exchange’s recovery process has run into dead-ends. According to Jennifer Robertson, the CEO’s widow and his company, Cotten had the sole knowledge of the exchange’s cold storage private keys.

Additionally, Robertson has now asked the court to pay her compensation for the legal costs incurred during the legal proceedings by E&Y.



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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.

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