Creditor protection extended for cryptocurrency exchange Quadriga

Creditor protection extended for cryptocurrency exchange Quadriga
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HALIFAX — Embattled cryptocurrency exchange QuadrigaCX has received a reprieve from its creditor protection deadline as the search for nearly $200 million in missing virtual currency continues.

Nova Scotia Supreme Court Justice Michael Wood today granted the insolvent company a 45-day extension for a stay of proceedings.

He also approved the appointment of a chief restructuring officer, but he said their work must be approved in advance by the court-appointed monitor to provide assurances that professional fees will not be “out of control.”

The judge also granted an order allowing the monitor to gain access to trading platform data stored in the cloud with Amazon Web Services.

Court documents say $190 million in missing Bitcoins and other cryptocurrency is locked in Quadriga’s offline digital wallets.

But the assets have not been located since the sudden death in December of the company’s CEO and sole director, 30-year-old Gerald Cotten, who was the only person who had the encrypted pass codes.

Another $70 million in cash is owed to Quadriga users, much of it tied up in bank drafts held by third-party payment processors.

The Canadian Press

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