Thought I would follow up on the QuadrigaCX exchange story as there have been some recent updates. If you are not aware of the exchange that has lost access to its customer’s funds following their CEO’s death, then start here:
It appears that any QuadrigaCX’s customers who have been waiting & hoping they may see some of their losses recouped following the company’s bankruptcy and insolvency proceedings may be in for a very long wait, as Canadian banks seem to be refusing to touch any of their money.
QuadrigaCX apparently did still have control of some of their funds that were located in hot wallets & not in cold storage, these have been sent over to the lawyers dealing with the bankruptcy claim. This is quite normal practice, as the lawyers will need to then come up with a list of which company debts to pay off with the remaining funds. Unfortunately, customers are usually the last on the list & I highly doubt there will be enough funds to pay out the $260 million owed to QuadrigaCX’s users.
The problem is that the lawyers have been unable to find a bank that is willingly to hold the funds for them while they sort out the case!
They have cited money laundering as the problem, raising concerns over where QuadrigaCX’s remaining assets have come from. Apparently the lawyers have had to ask for an order from Nova Scotia Supreme Court’s just to deposit this money into an account.
This story just seems to be getting more & more shady!