QuadrigaCX Goes to Court for Creditor Protection Over Inaccessible Funds

QuadrigaCX Goes to Court for Creditor Protection Over Inaccessible Funds

The story continues. As Gerald Cotten, Co-Founder of crypto exchange QuadrigaCX, is the only person allegedly said to hold the keys for the exchange’s cold wallet, his sudden death made inaccessible its $137 mln worth of crypto. The exchange heads to court appealing for creditor protection

The hearing is set today, 5 February 2019, in the Canadian province of Nova Scotia, as a consequence of not having the key to access its digital wallet holding $137 mln worth of bitcoins and altcoins. For this reason, QuadrigaCX is asking the Nova Scotia Supreme Court for creditor protection citing its inability to pay 115,000 users and in order to preempt lawsuits in the interim as the exchange is looking for ways to solve the issue.

Ernst & Young, a London-headquartered professional services firm, was sought by QuadrigaCX to supervise the proceedings. They will join the exchange for today’s hearing. [Ernst and Young cites the exchange owes 92,000 of its users versus the exchange’s calculation of 115,000 users.]

Ernst & Young Recommendations

Subsequent to their discussion with QuadrigaCX, an initial report was submitted by Ernst & Young. According to the document gathered by CoinDesk, the exchange is said to be ‘experiencing a liquidity crisis’ and is incapable of meeting user withdrawal requests. The exchange couldn’t ‘locate a significant amount of cryptocurrency’ after the death of its CEO and Co-Founder, Gerald Cotten.

The exchange is advised by Ernst & Young to retain its website suspension and obtain creditor protection covered by the Canadian Companies’ Creditors Arrangement Act. Under this protection, a thorough investigation of the exchange, to ascertain which assets can be distributed, can be done.

If the court allows QuadrigaCX the creditor protection it is seeking, it plans to operate until 28 April 2019.

Reclaiming the Funds

The Ernst & Young report states that cash held by QuadrigaCX by means of bank drafts, and cryptocurrency and fiat kept in third-parties can be recovered immediately. Another source of funds may come from selling the trading platform QCX, which is reportedly ‘a saleable asset of considerable value.’

After funds from the above proposition are liquidated, cryptocurrency forensics will be applied to determine and to access the digital wallet.

Related news

The Week In Cannabis: Colorado Hits $1B In Sales, Harborside In Canada, Kroger Embraces CBD, And More

It was a mixed bag in the cannabis-related news world this week. Colorado announced that since the state legalized adult-use cannabis sales in 2014, $1 billion worth of marijuana were sold, while Oregon’s Congress passed a bill that would allow it to trade cannabis with other consenting states. In Canada, a committee in the House of Commons called for the decriminalization of the possession of small amounts of drugs, while the U.S. House of Representatives rejected an amendment that Rep. Alexandria Ocasio-Cortez (D-NY) had introduced, which sought to make it easier for scientists to study Schedule I controlled substances like psilocybin – found in mushrooms, MDMA and cannabis. We saw Harborside, the iconic cannabis brand founded by activist Steve DeAngelo, start trading on the Canadian Securities Exchange and Kroger Co (NYSE: KR) announce it would start selling CBD products in its stores in 17 states. The Church of England said its £8.3 billion ($10.5 billion) Church Commissioners for England fund would start investing in cannabis, cannabis CPG company Coda Signature closed a $24.4 million Series A funding round, and Medicine Man Technologies, Inc. (OTC: MDCL) announced the acquisition of Colombian company Green Equity S.A.S. – marking its third deal this month. If you want to get this news recap in your email inbox every week, please subscribe to https://tinyletter.com/javierhasse Commenting on Harborside’s IPO, Debra Borchardt, CEO of Green Market Report, told Benzinga this is “a sign of how far the cannabis industry has come… From his early days as a member of the Yippies, which fought for legalization in the 60's, to being one of the first dispensary owners in California, Steve DeAngelo has always been on the front lines. It’s exciting to see a cannabis company with real revenue and strong leaders hitting the public markets.” Marijuana Stocks & ETFs Over the last five trading days: • The Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF) (TSE:HMMJ) lost 3.8%. • The ETFMG Alternative Harvest ETF (NYSE: MJ) tumbled 2.8%. • The AdvisorShares Pure Cannabis ETF (NYSE: YOLO) slipped 4.5%. • The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the period up 0.56%. Here are some of the top marijuana stocks (market cap above $500 million) in U.S. exchanges and how the performed over the last five trading days: • Acreage Holdings (OTC: ACRZF): up 4.1% • Aphria Inc (NYSE: APHA): down 6.6% • Aurora Cannabis Inc (NYSE: ACB): down 1.05% • CannTrust Holdings Inc (NYSE: CTST): down 4.8% • Canopy Growth Corp (NYSE: CGC): down 2.4% • Cronos Group Inc. (NASDAQ: CRON): down 3.1% • Curaleaf Holdings Inc (OTC: CURLF): down 14.35% • Green Growth Brands Inc (OTC: GGBXF): down 4.3% • Green Organic Dutchman Holdings Ltd (OTC: TGODF): down 10.8% • Green Thumb Industries Inc (OTC: GTBIF): down 13.8% • GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH): down 0.5% • Hexo Corp (NYSE: HEXO): down 12.75% • Harvest Health & Recreation Inc (OTC: HRVSF): down 8.1% • iAnthus Capital Holdings Inc (OTC: ITHUF): down 20.3% • Marimed Inc (OTC: MRMD): down 26.8% • MedMen Enterprises Inc. (OTC: MMNFF): down 8.45% • OrganiGram Holdings Inc (NASDAQ: OGI): down 13.6% • Scotts Miracle-Gro Co (NYSE: SMG): up 2.7% • Tilray Inc (NASDAQ: TLRY): up 0.5% In Other News Bloom Farms and Greenlane Holdings Inc (NASDAQ: GNLN) reached an exclusive CBD distribution agreement that makes Bloom Farms’ premium CBD products available to thousands of smoke and vape shops across the U.S. The line will initially feature three tinctures and a selection of 19 vaporization products. “We knew that the distributor we chose would be the face of our brand to thousands of retailers, so we wanted to partner with someone who understands that all CBD isn't created equal. Greenlane was the natural choice. They know our uncut oil makes a difference, are focused on hand-picked brands, and are true professionals,” Sallyann Nichols, President of Bloom Farms CBD, told Benzinga. Following Medicine Man Technologies’ Colombia announcement, Andy Williams, co-founder and CEO of Medicine Man Technologies, told Benzinga “this pending acquisition will provide us with the means to begin our strategic international expansion plan. We will have access to international licenses and intellectual property that will further enhance our cultivation, manufacturing, extraction, exportation and research and development.” mood33, a California of cannabis-infused beverages maker announced a distribution agreement with Caliva. Full story here. India Globalization Capital, Inc. (NYSE: IGC) announced its application for the cultivation and harvesting of hemp was approved by Arizona’s Department of Agriculture under the terms of its industrial hemp program. Full story here. Harvest Health & Recreation was selected as one of the six finalists in a highly-competitive retail licensing process in Pasadena, an affluent Los Angeles suburb. The win marks the company’s seventh license in California, a key state for Harvest’s growth. Sparx Cannabis, a family-owned and vertically integrated cannabis lifestyle company announced it has completed a Series A funding round with $10 million. The funds will help drive the company’s growth strategy, which includes expanding its footprint throughout California, the addition of multiple technological advances, the build-out and management of the company's manufacturing building, and the build-out of a distribution center. “The $10 million dollars that were raised by private investors through Sparx Cannabis' Series A funding round is a monumental step forward for our next-generation mom and pop cannabis company,” said Dr. Jared Helfant, Co-founder and President of Sparx Cannabis.  Vertically integrated Canadian company Valens GroWorks Corp. (OTC: VGWCF) expanded its multiyear agreement with Tilray. The agreement adds to the volume of extraction services Valens will provide to Tilray and adds an option for Valens to offer contract manufacturing as well, Valens said in a Monday press release. Full story here. U.S. cannabis delivery service Eaze announced a partnership with retired Boston Celtics player Paul Pierce. Full story here. The School of Medicine at the University of California, Riverside, received a three-year grant of $744,000 from the University of California’s Tobacco-Related Disease Research Program to investigate the impact of cannabis use on metabolic diseases, such as type-2 diabetes. Just what impact short-term and long-term cannabis use has on metabolic health is not entirely clear to scientists. Nicholas DiPatrizio, the grant’s principal investigator, will use a mouse model to understand how cannabis affects glucose homeostasis, which is dysregulated in type-2 diabetes. Paradoxically, some people who have used cannabis for several years have shown improvements in some of their metabolic parameters as well as lower body weights when compared to non-users. The DiPatrizio lab will explore this paradox. “We’re only getting started in answering some important questions related to cannabis and the effect its short-term and long-term use has on metabolic health,” DiPatrizio said. The grant is the first cannabis grant received at UC Riverside. Integrated cannabis brand Vertical Companies is expanding its reach as a multistate operator with the acquisition of UMBRLA Holding Company and Brands for $462.5 million. Full story here. California-based luxury cannabis brand Canndescent said it became California's first MSO by investing $25.8 million to purchase buildings and operating ...Full story available on Benzinga.com
Benzinga

ACAMS 15th Annual AML and Anti-Financial Crime Conference in Berlin Focuses on Fintech Topics

Themed "Collaboration's Next Wave," ACAMS' 15th Annual AML and Anti-Financial Crime Conference offered unique insights and expertise on financial crime prevention for compliance professionals. More than 80 speakers from countries including Germany, the United Kingdom, the United States, France, Switzerland, Estonia, Sweden and Denmark shared their strategies on combatting money laundering and financial crime. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190614005305/en/ Alexandra Jour-Schroeder, Acting Deputy Director General of the Directorate-General for Justice and Consumers, European Commission (Photo: Business Wire) Twenty-three sessions held June 12-13, 2019, included a keynote address by Alexandra Jour-Schroeder, acting deputy director general of the Directorate-General for Justice and Consumers, European Commission, and special presentations by John Cusack, co-chair of Wolfsberg Group, and John E. Smith, former director of the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC). In addition, there was a cross-section of topics on risk vulnerabilities and risk management, regulatory challenges, sanctions, bribery and corruption. Issues and threats related to cybercrime and emerging payment systems were featured high on the agenda, which was crafted to address concerns from regulators, enforcement officials and finance professionals around the world. Sessions included: ...Full story available on Benzinga.com
Benzinga

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.