Canadian Court Halts Proceedings Against QuadrigaCX for a Month

In the case against the Canadian crypto exchange , Nova Scotia Supreme court judge Michael Wood has granted a 30 day stay on Tuesday, according to a Reuters report. This will stop any creditor’s lawsuits from proceeding against the company with a temporary reprieve.
Furthermore, the court documents also show that the exchange’s CEO Gerald Cotten has filed for a will merely 12 days before his unexpected death.

According to the documents, Cotten has left all his assets to his wife, Jennifer Robertson, and made her the executor to his estate.
Cotten’s sudden death in December last year has left the exchange in a complex situation as he did not leave the passwords of the exchange’s storage wallets. This resulted in the block of CAD 190 million ($135 million) of around 115,000 customers of the exchange.
In January, Cotten’s wife filed an affidavit mentioning that she could not retrieve the wallet passwords of the exchange noting: “Despite repeated and diligent searches, I have not been able to find (the passwords) written down anywhere.”
To repay the customers’ funds, the exchange is considering to sell its platform and asked the court for some time to arrange CAD 250 million.
Major Claims Against the Exchange
Yesterday, a blockchain portal published a research report disputing most of the claims made by QuadrigaCX. According to the report, the exchange never had the $190 million in Bitcoin it supposedly lost access to after the unexpected death of its CEO.
It also refutes the exchange claims of possessing any cold wallet and raised many questions on the operational practices of the exchange alleging that it has repaid the withdrawal requests from the customer deposits to the exchange.

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