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

Mapping out the blockchain ecosystem in Canada

Canada has become home to an assortment of blockchain companies. A report by Chamber of Digital Commerce Canada found that 96% of Canadian businesses with 500 employees or more have considered incorporating blockchain technology into their business. A survey by Deloitte in 2018 found 51% of responding companies in Canada were already investing in blockchain, and a study by the Bank of Canada found that 5% of Canadians own bitcoin. The nation has been well-positioned to be an industry player due to its low energy costs and high internet speeds, as well as its mining rig-friendly cold climate, which gives the nation a competitive advantage in attracting cryptocurrency mining operations. Join Genesis now and continue reading, Mapping out the blockchain ecosystem in Canada!
The Block Crypto

Stolen credentials used to access TransUnion Canada’s consumer credit files

A malicious actor used stolen credentials to access a web portal operated by credit reporting agency TransUnion Canada and then used that portal to access consumer files. This week, BleepingComputer posted a report containing scanned images of a disclosure notification that TransUnion Canada has begun mailing out to affected consumers. The notification, dated Sept. 19, an online intruder obtained an access code and password used one of TransUnion Canada’s business customers, the Winnipeg, Canada-based financial institution CWB National Leasing. This gave the illegal party access to consumers’ credit file information from a time period of June 28 through July 11 of this year. In order to look up files on a specific consumer, the attacker first would have had to input certain personal information regarding that particular individual. According to TransUnion, the offender was, in fact, able to acquire personal data on certain consumers – including Social Insurance Numbers – from an unknown third-party source, prior to looking them up in the portal. TransUnion’s records of consumers typically include one’s names, birth date, current and former addresses, information related to credit and loan obligations (including payees) and credit re-payment history, but not account numbers. TransUnion’s systems themselves were not breached. The company says that in response to the incident, it terminated the compromised login credentials and contacted the Office of the Privacy Commissioner of Canada. It also is offering victims two years of free ID theft insurance, and will ensure that any unauthorized look-ups of consumers’ files will not count toward one’s credit report. The post Stolen credentials used to access TransUnion Canada’s consumer credit files appeared first on SC Media.
SC Media

Hot news

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