Article content

HALIFAX — Less than three months after one of Canada’s biggest cryptocurrency exchanges was shut down amid a swirl of controversy, a bid to restructure Vancouver-based QuadrigaCX has failed and the virtual company has officially entered bankruptcy proceedings.

The move, approved Monday by a Nova Scotia judge, marks a turning point for the 115,000 users who are owed more than $260 million in cash and cryptocurrency, including Bitcoin and Ethereum.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or QuadrigaCX cryptocurrency exchange officially placed in bankruptcy Back to video

The transition to the bankruptcy process means Ernst and Young, the court-ordered monitor overseeing the case, will be granted enhanced investigative powers as a trustee under the federal Bankruptcy and Insolvency Act.

The professional services company now has the right to compel production of documents and testimony from witnesses.

Quadriga Fintech Solutions Corp. and its related companies were granted protection from their creditors under the Companies’ Creditors Arrangement Act (CCAA) on Feb. 5, but it quickly became clear the company had no real assets — and that the process of recovering the missing funds would be difficult.