QuadrigaCX in Court: A 30-Day Stay, Forfeiture of Late CEO’s Laptop for Investigation and Exchange Up for Sale
QuadrigaCX has been plagued with many issues since the death of CEO Gerald Cotten over a month ago. When the CEO passed, he left a major problem behind – $190 million worth of QuadrigaCX that was not accounted for. Though there have been multiple statements from the company on their intentions to return the funds to users over the coming weeks, the financial troubles have been evident.
In January, the late CEO’s wife submitted an affidavit that said that the exchange was left without access to its own wallets, and that there have been no signs of passwords left behind.
Right now, about 115,000 users are impacted by this present loss, though lawyers are working towards a solution that may end up involving the sale of the company.
The CBC is reporting on the evolving story on their website, where they have linked a live stream of tweets to update on the progress made so far, which is being updated by Jack Julian of CBC. According to a recent report from the CBC, prosecutors are seeing to decrypt Cotten’s laptop to seek out the necessary passwords.
By 6:21am PST, the laptop was given to the Quadriga lawyers, and an ex-RCMP computer expert was evaluating it. Moments later, it was giving to the lawyers on behalf of creditors, though the eventual destination is to a court-appointed monitor lawyer.
About an hour after the laptop was transferred, a lawyer for the company stated that there are coins that have been found, and that they want the authority to store it in a wallet. They added that the contents of the wallet would be published for creditors to see. However, the judge quickly said that the wallet would need to be controlled by a court-appointed monitor.
The court debate turned to the privacy of users, which would otherwise be a public list of all creditors owed. However, the case involving a privacy-centered crypto exchange would pose some challenges. The court decided that the 30-day stay will be in place, which means that QuadrigaCX will not be subjected to lawsuits and deadlines during this time.
Though the lawyer of the creditors urged the judge to settle quickly, the judge expressed no urgency, adding that it is important for the investors’ voices to be heard during this time. Julian added quotes from the lawyers and Quadriga as well, saying that the company has expressed that they hope to use the 30-day stay of proceedings to
“find these assets to the extent that they exist.”
However, Julian points out that, despite Quadriga expressing the desire to provide information through an organized fashion, they lack a physical office and don’t even have a bank account.
Court is scheduling to reconvene in an hour, which is 11:00am PST (or 2:00pm Atlantic Time). To follow the live tweets, check the official CBC website at https://www.cbc.ca/news/canada/nova-scotia/quadrigacx-cryptocurrency-gerald-cotten-court-bankruptcy-1.5006164?cmp=rss.