Home / Cryptocurrency / Cryptocurrency exchange seeks stay of proceedings in Halifax court | Business

Cryptocurrency exchange seeks stay of proceedings in Halifax court | Business

HALIFAX — A lawyer for Canada’s largest cryptocurrency exchange is asking a Halifax judge today to give the company time to find $250 million in missing cryptocurrency and cash.

Maurice Chiasson, who is representing QuadrigaCX, requested a 30-day stay of proceedings before Nova Scotia Supreme Court Judge Michael Wood in a bid to stop any lawsuits from proceeding against the company at this point.

QuadrigaCX says on its website that it filed for creditor protection on Jan. 31 and that the court will be asked to appoint a monitor to oversee the proceedings.

The Vancouver-based exchange owes $70 million in currency and an additional amount of cryptocurrency valued at approximately $180 million to roughly 115,000 users.

Court filings show that some have very large balances, with the largest affected user claim reportedly valued at approximately $70 million.

Lawyers for some of the 115,000 affected users were in the Halifax court.

Court documents show QuadrigaCX had been facing liquidity issues over the past year, but CIBC froze roughly $25.7 million of its funds held in the account of a third-party processor in January 2018.

The company then lost its founder, chief executive and sole director Gerald Cotten, who QuadrigaCX said died suddenly overseas.

Court filings show that after his death, QuadrigaCX employees have been unable to locate or access cryptocurrencies.

Employees tried to access cryptocurrency within QuadrigaCX’s “cold” wallets, a system which stores cryptocurrencies offline to avoid hacking, such as on USB sticks or electronic hardware not connected to the internet.

The Canadian Press


Source link

Check Also

Quadriga: The cryptocurrency exchange that lost $135m

Image copyright Facebook/Quadriga Image caption Gerald Cotten When the 30-year-old founder of a Canadian cryptocurrency …