Altcoin News: Unbelievable! Canadian Exchange “Loses” Its Crypto Reserves

February 2nd, 2019 by Marko Vidrih on ALTCOIN MAGAZINE

Canada-based Exchange QuadrigaCX has filed for bankruptcy protection as it has liquidity issues. It is reported that the Exchange has lost access to its crypto reserves. Already on Monday, the website for “maintenance” went offline.

Exchanges are always victims of hacks. The fact that they simply can not find their deposits, on the other hand, is rare. But that seems to have happened to the Canadian crypto exchange QuadrigaCX. After their website on Monday because of “maintenance” went offline, every visitor since Thursday expects a “message from the QuadrigaCX board”.

According to them, over the past few weeks, the Exchange has sought to “pinpoint and secure” its “very significant cryptocurrency reserves held in cold wallets” to solve the platform’s liquidity problems. Unfortunately, the efforts had been in vain.

Exchange applies for bankruptcy protection

According to the embassy, ​​on Thursday, under the Companies Creditors Arrangement Act (CCAA), a petition for bankruptcy protection was filed with the Supreme Court of Nova Scotia. QuadrigaCX would like to be placed under the supervision of the auditing firm Ernst & Young in order to avert the threat of bankruptcy.

QuadrigaCX CEO recently deceased

Just over two weeks ago, QuadrigaCX’s Twitter presence announced the death of Gerry Cottens, the founder and CEO of the Exchange. According to Bloomberg, the only 29-year-old had died “suddenly”. There is a possibility that Cotten alone had access to the Cold Wallets and the Private Keys could not transfer to anyone before his demise.

QuadrigaCX was involved in litigation with the Canadian Imperial Bank of Commerce (CIBC) last year. According to the bank, it was unclear who would be the actual owner of 26 million Canadian dollars in an account of the Exchange. The conflict ended with the court temporarily collecting the funds in question to resolve the property issue.

January 2019 was a month full of bad news for clients of smaller exchanges: First, the New Zealand crypto exchange Cryptopia fell victim to a hack, then the Ukrainian trading center Liqui.io suddenly closed for lack of liquidity, with strong signs of an exit scam. Those who had hoped that decentralized exchanges could profit were also disappointed: their trading volume reached an all-time-low in January.

Author: Marko Vidrih