Crypto Exchange QuadrigaCX Goes Offline, Claiming ‘Maintenance’ Issues
The Canadian platform continues to struggle with problems after its recent battles with local banks and the sudden death of its founder.
Vancouver-based cryptocurrency exchange QuadrigaCX has gone offline, citing maintenance problems without providing further details or specifying when the service will be restored. The platform has been inaccessible since Monday.
QuadrigaCX has also offered no information on the state of the customer funds. Users complained via social media channels about problems in accessing their accounts.
“Our site is down for maintenance. We apologize for the inconvenience this may cause. We appreciate your patience, and will keep you updated as we know more. Thank you,” the exchange says in its notice.
QuadrigaCX’s Twitter account was updated five days ago with information about access to the support desk, while the most recent post on Reddit is an announcement of the death of founder Gerald Cotton on January 15.
In January 2018, the Canadian Imperial Bank of Commerce (CIBC) froze $21.1 million of QuadrigaCX funds stored in accounts related to the exchange’s payment processor, Costodian. The bank claimed it could not determine the exact owner of the money – QuadrigaCX, the platform users, or the custodian company. Therefore, it wanted to use an “interpleader order” clause or transfer the money to the court so that the justice system can handle the issue. In December, the court ruled in favor of the bank’s demand and did not accept QuadrigaCX’s claims that it owned most of the funds.
“[CIBC] has been holding the respondents’ funds hostage since January 8, 2018, while it hopelessly attempts to find an ex post facto justification for wrongfully freezing and continuing to freeze the accounts in the first place,” the Globe and Mail reported QuadrigaCX as saying in court documents.
Earlier this month, the exchange said that another local lender, Bank of Montreal (BMO), released company funds but refused to maintain its account, so QuadrigaCX started working with payment processor Billerfy to resolve the issue.
“Currently we are having Billerfy endorse the drafts to our company, this will allow our lawyer to have the funds cashed into a specific bank account that has been created for our company,” the exchange says in its website as per a Google-cached version from January 27.
QuadrigaCX offers several crypto assets, among them Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). The exchange clocked $447,332 in trading volume in its last working day, according to Coinmarketcap data.