Canadian crypto-exchange QuadrigaCX gained fame thanks to the death of its CEO Gerald Cotten. Allegedly, the top Manager is the only one who had access to $145 million of customer money.
In early 2019, the canadian crypto-exchange QuadrigaCX announced the death of its CEO. According to the site, he not only passed away, but also took with him access to the cold storage of the exchange. They, according to various sources, stored from $136 million to $145 million of customer money in cryptocurrency.
Since then, the exchange has been under the protection of creditors ‘ rights, which did not allow clients to sue it. At this time, the court appointed an independent observer – auditor from the “big four” Ernst & Young. His main task was to find the money of customers, and, of course, access to them. But the company’s attempts were not successful. After all, according to E&Y, the wallets of the exchange have been empty since last spring.
Earlier last week, the Supreme court of Canada ruled to declare QuadrigaCX bankrupt. According to the lawyer and project Manager of the security Practice of juscutum Alexander Gorobets, such a procedure has several goals: to preserve the assets of the enterprise from inefficient use by management and to streamline creditor claims in order to maintain priority in their repayment.
This is achieved through the transfer of control into the hands of a trusted person. In the case of QuadrigaCX – auditor Ernst & Young. As a result, the company should either bring the crypto-exchange to a “decent look”, or sell everything that is possible.
However, there is almost no hope for a “happy ending” to this story. As well as the possibility of returning “hard-earned” ordinary people.