Canadian Supreme Court Judge Delays Outcome For Quadriga Creditors Legal Representation
It looks like the QuadrigaCX case, which you may remember as the Canadian crypto exchange whose CEO died and went with all the money from the clients to his grave, is far from over.
Now, Nova Scotia Supreme Court Judge Michael Wood, a Canadian judge which is on the case, has declined to name any law firms to represent the over a hundred thousand users who were harmed by the demise of the CEO and the following money that was lost.
According to the judge, he plans to think more and reach a final decision later. However, the judge has decided to turn down a proposal which, if accepted, could have delayed the process even more.
Three Legal Teams Have Applied
So far, a total of three legal teams have applied to defend the creditors in this case: Miller Thomson with Cox, Bennet Jones, and McInnes Cooper and Palmer and Osler. Another company called Goodmans LLP also wrote a letter calling for an extended process, as he also wanted to participate.
As soon as one team would be appointed, it would coordinate the tasks in order to try to get the $196 million USD that the clients have lost.
The case is extremely high-profile, which means that these companies are trying to get a shot at the chance of becoming famous from winning this case. Now, they are all waiting for the judge to decide who is going to get the position.
Problems With Money
This whole case is starting to become a nightmare. Not only legal representation was still not decided but some money issues are also starting to appear.
EY, a professional services company, was appointed to the court to monitor Quadriga and the company has explained that its oversight was being funded with $300,000 USD. However, $250,000 USD has already been spent and the estimates of the company are that the money would not last for long.
There are some people trying to release some of the fiat reserves held by Quadriga in order to pay for some of the costs that the case is having right now. However, at least one of the processors from the exchange claims that it has the right to hold funds.
Some of the companies are also having many problems as they want to liberate Quadriga’s money but they are not being able to find banks willing to work with them, as most of them do not want to touch on crypto-related money.
However, at least one initiative was successful. A group of banks was able to transfer some of the money to the law firm that represents Quadriga, Steveward McKelvey’s firm.
A new hearing will be made on February 22, next week. More updates will be revealed then.