Canadian Judge Delays Decision on Legal Representation for QuadrigaCX Clients
A Nova Scotia Supreme Court judge has delayed a decision on legal representation for clients of major Canadian cryptocurrency exchange QuadrigaCX.
A Canadian judge has delayed a decision on legal representation for customers of major Canadian cryptocurrency exchange QuadrigaCX. The news was tweeted by Canadian Broadcasting Corporation reporter Jack Julian on. Feb. 14.
On Thursday, Feb. 14, the Nova Scotia Supreme Court reportedly brought together over “a dozen” lawyers who represent 115,000 cryptocurrency traders owed around $260 million ($195 million) by Quadriga after the exchange’s founder’s, Gerald Cotten, passed suddenly. Specifically, the customers are seeking CA$70 million ($52 million) in cash and CA$190 million ($142 million) in Bitcoin (BTC) and other cryptocurrencies.
Justice Michael Wood reportedly said that he would issue a written decision in the case within a week. In the meantime, the monitor appointed by the court, Ernst & Young, has revealed that at the current stage the exchange owes CA$100,000 ($75,000) to the lawyers, while Quadriga claims that “as of today, we don't have anything.”
Maurice Chiasson, a lawyer representing Quadriga, reportedly stated that Cotten’s wife Jennifer Robertson “has put in CA$250,000 of the CA$300,000 she’s promised to fund this process so far. But that money will run out in the next two weeks if not sooner.”
Following submission from the competing legal teams, Wood reportedly said that he is “not sure if you’ve made my life any easier.” Ernst & Young said that the first nine days of the process has been “hectic,” also stressing the need of stabilizing current investigations into Quadriga’s operations.
On Feb. 13, Cointelegraph reported that in a recently released Ernst & Young’s report dubbed “First Report of the Monitor,” the ‘Big Four’ audit firm revealed that:
“On February 6, 2019, Quadriga inadvertently transferred 103 Bitcoins valued at approximately $468,675 to Quadriga cold wallets which the Company is currently unable to access. The Monitor is working with Management to retrieve this cryptocurrency from the various cold wallets, if possible.”
In the course of the audit, Ernst & Young secured a number of Quadriga electronic devices — reportedly owned or used by Cotten — including four laptops, four cell phones, and three fully encrypted USB keys. Ernst & Young has reportedly stored the devices in a safety deposit box.