QuadrigaCX Creditor Protection Extended Until June
The exchange is subjected to further research from the Monitor as it undergoes a bankruptcy procedure while still under protection from creditors.
QuadrigaCX received another extension on its creditor protection, till June 28, as the former Canadian cryptocurrency exchange is also going through a bankruptcy procedure. The market operator has more than 115,000 former traders, with a total claim on $250 million, reported CBC News.
Justice Michael Wood extended the period of protection from lawsuits for more than two months ahead. The Ernst and Young representative, George Kinsman, refused to give an update on the asset recovery progress. The Monitor is tasked with researching the sources, potential wallets and bank accounts of the exchange, to achieve the recovery of funds.
So far, the devices left by the exchange’s founder, Gerald Cotten, have not been accessed. But no addresses have been found holding the alleged amounts of cryptocurrency, worth as much as $180 million. So far, the Monitor has uncovered cases where the QuadrigaCX finances may have led to personal enrichment, and "occurrences where the corporate and personal boundaries between Quadriga and its founder Gerald Cotten were not formally maintained, and it appeared to the Monitor that Quadriga funds may have been used to acquire assets held outside the corporate entity".
Some of the fiat funds owed to traders may be held with independent money processors. Separate users have achieved partial withdrawals, as their funds were provided by money processors. But private investigations have made very little progress in finding the exchange’s wallets.
After the latest April 18 hearing, which was deemed highly procedural, Justice Michael Wood is leaving the case, with no more Supreme Court hearings. There are no appointed meetings, and in the coming weeks, a Case Management Judge will be appointed for QuadrigaCX.
Social media users are warning that with the creditor protection in place, any promises on a refund are possibly fraudulent.
Additionally, projects like LinkCoin are exploiting the fame of the QuadrigaCX case to promise an airdrop.
A meeting of creditors is scheduled for this May 2, to establish a path for compensating traders. Expectations are for receiving pennies to the dollar.