Exchange News

The Quadriga crypto exchange case: What the Supreme Court has decided

After the sudden death of the founder of Quadriga crypto exchange, Gerald Cotten, his widow, Jennifer Robertson, went to the Nova Scotia Supreme Court to file a creditor protection plea. As it has turned out, the court has granted 30 days before creditors of the troubled Quadriga crypto exchange can move to court demanding payment.

According to a document tabled in court, Cotten had supreme control of all cryptocurrency stored in cold wallets. After his death, access to the cold wallets which roughly holds $140 million U.S dollars worth of crypto became a major problem.

One of the big four auditing firms, Ernst & Young (EY) has also been chosen by the court to keep a watchful eye over Quadriga crypto exchange “processes and procedures over the next several months.”

Part of EY’s assignment would be to help Quadriga crypto exchange quickly sell some of its assets and use the proceeds to pay creditors who may be more than one hundred thousand. All the creditors will need to be served with a copy of the stay order in a process that will be facilitated by the Quadriga crypto exchange’s attorneys and attorneys representing Ernst & Young within five days.

However, to prove their claims that they do not have access to Cotten’s laptop, prosecutors have asked that the laptop be presented in court.

As reported by CBC, the encrypted laptop:

Will be given to lawyers acting for the creditors and will be eventually given to a court-appointed monitor.

Lawyers representing the Quadriga crypto exchange also indicated that the exchange may be sold and proceeds used to pay creditors.

Indian authorities have also issued Cotten’s death certificate which has similar details to those filed in court by Robertson.

Do you think there is a way of cracking the laptop’s encryption or Quadriga crypto exchange will have to sell assets or even itself to pay debts?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

Comments are off this post!