QuardigaCX is ready to file for bankruptcy

quardigacx filing for bankcruptcy

Canadian Cryptocurrency firm QuadrigaCX bankruptcy case has entered a new stage with the application submitted to nova scotia court this week. The application claimed that the firm is indebted with two hundred and sixty million dollars ($260m) due to the death of its owner.

The Young and Ernst group has been given the order for the recovery of 115,000 users who have lost access to their money. The recovery is especially difficult as the company has no real assets. One hundred and ninety-million dollars ($190m) has been locked in the offline digital wallets as the deceased CEO Gerald Cotton was the only person who knew the concealed password to access the wallets.

Despite many efforts and several claims that the whole escapade may just be a facade to cover up a large scale scam users are still moneyless. While on the other hand, Cotton’s widow has distanced herself after she faced the backlash from users.

What makes the situation worse is that the deceased CEO had used the firm’s money to buy his personal assets. The CEO’s widow has been prohibited to use the assets of QuadrigaCX and is only allowed to use two banks for living expenses which are overseen by the court.

The company still owes USD 70 million to its clients, and the funds still are in the third party’s account. This has made the situation more complicated and has given an opportunity to the former clients of the firm to spread rumors on social media.

Aroosa Nadeem

Aroosa Nadeem

A media graduate and passionate media person Aroosa has a knack for digital media journalism and outreach. She has contributed content to different digital media publishers in a variety of areas including technology, health and finance.

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