Newspaper article The Canadian Press

Creditor Protection Extended for Cryptocurrency Exchange QuadrigaCX

Newspaper article The Canadian Press

Creditor Protection Extended for Cryptocurrency Exchange QuadrigaCX

Article excerpt

Creditor protection extended for QuadrigaCX


HALIFAX - Embattled cryptocurrency exchange QuadrigaCX has received another reprieve from its creditors, as the search for nearly $200 million in missing virtual currency continues following the sudden death of the company's co-founder.

Nova Scotia Supreme Court Justice Michael Wood on Tuesday granted the insolvent company a 45-day extension for a stay of proceedings.

"I'm satisfied that it's appropriate to extend the stay," he told the court. "There's value in continuing it and the company -- the applicants -- are continuing to work in good faith."

One of Canada's largest cryptocurrency trading platforms, QuadrigaCX and its affiliates were granted creditor protection in Nova Scotia last month after the company's CEO and sole director, 30-year-old Gerald Cotten of Fall River, N.S., died suddenly in December while travelling in India.

According to court documents, he was the only person who had the encrypted pass codes needed to access $190 million in missing Bitcoins and other cryptocurrency locked in QuadrigaCX's offline digital wallets.

Another $70 million in cash is owed to Quadriga users, much of it tied up in bank drafts held by third-party payment processors.

The extension for creditor protection, until April 18, allows the court-appointed monitor to continue searching for the missing digital assets.

Meanwhile, a lawyer representing QuadrigaCX asked the Halifax court to appoint a chief restructuring officer to represent the company and potentially oversee a future sales process.

"There are a number of third parties floating around that have expressed an interest in acquiring the platform," Maurice Chiasson told the court.

"We think that there's a benefit to having this position appointed now ... And then ultimately once we get into a sales process, we're going to need someone that's knowledgeable about the business. …

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