quadriga given creditor protection as it attempts to find $250m in missing cryptocurrency, cash after founder dies with only password to encrypted laptop
Canada\'s largest cryptocurrency exchange was protected by creditors on Tuesday as it dealt with the consequences of the founder\'s death, and the virtual company\'s inability to obtain digital assets believed to be worth $0. 18 billion is locked in his laptop.
Gerald Kohn, CEO and sole director of trade platform QuadrigaCX, traveled in India in December.
Court documents say that when he suddenly died of complications associated with the clone\'s disease.
He is 30 years old.
His wife, Jennifer Robertson, filed an affidavit with the Nova Scotia Supreme Court, stating that cottten was the only person who could use a laptop.
She said she had searched their home on the Fall River in New York state. S.
There he runs most of the business and can\'t find any passwords or business records.
QuadrigaCX owes 115,000 of its users $70 million in cash and $0. 18 billion in bitcoin and other cryptocurrency.
According to the market price in December.
On Tuesday, Judge Michael Wood also awarded QuadrigaCX 30-
The lawsuit was suspended for one day to prevent any action against the bankrupt company.
Maurice Chiasson, QuadrigaCX\'s lawyer, said the orders were necessary to stabilize a chaotic case interrupted by \"threats, cover-up and other\" legal actions.
\"This is an attempt to call for time
He told the court and added that QuadrigaCX\'s newly appointed director decided to close the site on January.
It caused \"considerable panic.
Meanwhile, a spokeswoman for the Nova Scotia RCMP confirmed on Tuesday that they are assisting in the investigation into QuadrigaCX. Cpl.
Jennifer Clark says the RCMP Toronto West detachment is leading the investigation.
In his submission to the court, Chiasson said that it turned out that it was difficult for his team of lawyers to deal with the unregulated and secret world of cryptocurrency transactions.
On one occasion, he described the challenge of tracking the third place --
Third-party payment companies that may have digital assets belonging to QuadrigaCX users.
\"We are still trying to find who they are,\" he said . \".
\"We still think . . . . . . There are up to $0. 18 billion of cryptocurrency floating around . . . . . . There are a lot of moving parts.
Chiasson told the court that the company could get about $30 million in bank bills, but formal financial institutions have made it clear that they are nervous about dealing with the funds.
Over the weekend, Chiasson said his company learned
Companies known as \"black banks\" may hold $11 million in cryptocurrency, which is owed to QuadrigaCX creditors.
Chiasson also said that reaching out to 115,000 affected creditors could be another challenge as those who trade in cryptocurrency generally prefer to remain anonymous and often get it from anonymous online chat rooms
\"They don\'t know what\'s real and what\'s not,\" he said . \".
As for the computer at cottten, he said, a lot of resources have been used to access the encrypted files of the machine.
\"Some limited successes have been achieved,\" he said . \" He added that a retired RCMP official with expertise in encryption technology had checked the computer.
Attorney Raj Sahni, representing 78 creditors who owe more than $100 million, was surprised by the novel nature of the case.
\"It\'s completely different from what we \'ve seen before,\" he told the court . \"
Sahni pointed out the error message of the chat room, as well as the court-
The squad leader appointed by Ernst and Young did not know where most of the money was.
As a monitoring, the company will oversee the search for lost assets and determine if the business can be sold.
EY later agreed to issue a notice of court action on Reddit.
Com is an online community in which the collapse of QuadrigaCX is the subject of a lot of discussion and some rumors.
On one occasion, a young member of the EY Team was asked to explain to the court how Reddit worked.
In her affidavit, Robertson complained that some online chats raised questions about whether or not (Cotten)is really dead.
She also received a cyber death threat, she said.
George Kinsman, EY\'s spokesman, said the squad leader had a lot of work to do.
\"There are many affected parties involved, and the amount is very large . . . . . . But I think getting an order would be the first step in a meaningful process, he said outside of court.
\"There will be transparency.
The expert will be responsible for ensuring the safety of the Cotten laptop, Kinsman said, confirming that the laptop will remain in the Toronto office.
The QuadrigaCX platform based on blockchain technology was launched by cottten in December 2013.
It had 363,000 registered users before the platform was closed.
QuadrigaCX and its affiliates are registered in BC but it does not have offices, bank accounts and employees except for a few contractors.
\"Most of the business of these companies is run by Gerry, wherever he and his computer are,\" Robertson said in her affidavit . \".
Court documents show that QuadrigaCX has been facing liquidity problems for the past year, but there was a major problem when the CIBC froze about $25 in January 2018.
7 million of its funds are deposited in a third account.
Third party payment processor
The money has been handed over to the processor Costodian, but they have not yet deposited it in the bank draft, court documents say.
Cryptocurrency is unregulated or supervised by the industry and is usually stored digitally on a computer server connected to the Internet, which is called a hot wallet.
Digital assets can also be stored on physical devices, such as a USB flash drive that stays offline to prevent hacking.
Robertson said in her affidavit that QuadrigaCX has few cryptocurrency saved in popular wallets.
After the death of Cotten, QuadrigaCX\'s employees tried to enter the company\'s cold wallet, but they either didn\'t go in or found that there was almost no cryptocurrency in the wallet.