Canadian crypto exchange QuadrigaCX owes $190 million to customers

01 Feb, 2019 | Updated: 01 Feb, 2019
by Joeri Cant
Update
Canadian crypto exchange QuadrigaCX owes $190 million to customers

According to a sworn affidavit filed with the Nova Scotia Supreme Court, Jennifer Robertson, the widow of QuadrigaCX founder Gerald Cotten, said that Canada’s largest cryptocurrency exchange now owes its customers roughly $190 million.

The hits keep on coming for Canadian cryptocurrency exchanges.

Just a few days ago Canada’s largest cryptocurrency exchange went offline due to an unannounced system maintenance upgrade, according to a statement on its website.

However, since then, the company released a statement on their website, that it was unable to access its cold storage wallets and that it had filed for creditor protection.

Read more: Canadian crypto exchange QuadrigaCX goes offline, Reddit screams 'Exit Scam'

According to a court filing obtained by CoinDesk, the Canadian exchange holds around 26,500 bitcoin, 11,000 bitcoin cash, 11,000 bitcoin cash SV, 35,000 bitcoin gold, close to 200,000 litecoin and nearly 430,000 ether.

The exchange has roughly 115,000 users with balances that totals $70 million CAD in fiat and $180 million CAD in crypto, according to the filing.

Jennifer Robertson added that it was the normal procedure for her husband to move the majority of the coins to cold storage as a way to protect the coins from hacking or other virtual theft.

She added that only her husband held the full responsibility for handling the funds and coins, and that the remaining team members weren't able to access the exchange’s cold wallets ever since his unexpected death in early December 2018.

Robertson claims that while she does have Cotten’s laptop, the device is encrypted and she does not have its password. A consultant apparently has been attempting to recover the laptop’s contents, unfortunately without any success to date.

Read more: Another Canadian crypto exchange in trouble? Coinsquare fires 40 employees

If the application for creditor protection is accepted by the Courts, then the court might give QuadrigaCX at least 30 days protection from its creditors.

'QuadrigaCX needs a stay of proceedings which will allow Quadriga and its contractors additional time to find whatever stores of cryptocurrency may be available and also to negotiate the bank drafts available to Quadriga' Robertson said.

She further noted that 'many, if not all' of Quadriga’s customers might suffer further damages without it.

The exchange is now considering to sell its operating platform. Apparently multiple parties already showed interest to acquire the operating platform, even though no names have been released.

The Courts will rule on the request for creditor protection on February 5. Chepicap will keep you updated.

Do you still think this could be an 'Exit Scam?' Let us know in the poll below.

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