According to reports by CBC (local media outlet) dated April 8, QuadrigaCX (major cryptocurrency exchange in Canada) has now officially been declared bankrupt. Reports suggest that the Exchanges bankruptcy was approved by Nova Scotia Supreme Court Justice Michael Wood, and follows the court monitor Ernst & Young’s (EY) recommendation saying that it should be declared bankrupt this month.
The legal team of Ernst & Young then quibbled that the restructuring process for QuadrigaCX which is underway under the firms CCAA (Creditors Arrangement Act) should move to another method under BIA (Bankruptcy and Insolvency Act). Following this, the ruling has granted EY reinforced investigative powers under the BIA as a trustee, which essentially means that the firm can require the production of documents and testimony from the witness.
Recently, Wood granted a so-called asset saving order from EY, which substantially extends to every asset of Jennifer Robertson (Wife of Gerald Cotten – late co-founder QuadrigaCX) along with cotten estate. According to the prohibition on it, no asset can be transferred, sold or removed.
As reported earlier, Quadriga has filed for creditor protection after the death of Cotten; it lost its cold wallet access along with corresponding keys which evidently held various assets owned by multiple clients. According to reports, at present, the exchange owes over $195 million to over 115,000 customers.
In the month of March, legal representatives of QuadrigaCX – Miller Thomson (law firm) along with Cox and Palmer – formed an official group of the users who were affected by the exchange. Further, the group is set up with the intention of helping the law firms represent all the users who have been changed in the court proceedings against QuadrigaCX