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QuadrigaCX Granted Respite with Creditors Held at Bay

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Last updated: June 26, 2023 06:53 EDT

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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Last updated:

June 26, 2023 06:53 EDT

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A Supreme Court judge has handed troubled Canadian cryptocurrency exchange QuadrigaCX a further six weeks’ protection from its creditors as it continues a frantic search for some USD 140 worth of missing cryptocurrencies.

Per Canadian newspaper the Globe and Mail, the judge stated that creditors will have to wait until April 23 before they can bring legal action against the company, with some 115,000 customers affected by QuadrigaCX’s failure to locate their funds – which appeared to have vanished since the mysterious death of the exchange’s founder Gerald Cotten, late last year.

Major figures in the cryptocurrency industry have accused the company of attempting a cover-up.

Quadriga lawyer Maurice Chiasson told the judge that the decision to grant the extension had needed to be made in order to prevent a “free-for-all” as lawyers close in on the beleaguered company. Chiasson argued, “We would see some lawsuits filed [if Quadriga were not granted an extension]. Such proceedings could be filed in multiple jurisdictions. They could be conflicting.”

Cotten’s widow, Jennifer Robertson, meanwhile, has asked the court that she be repaid USD 225,000 of her own money spent on legal costs as she forked out to help the exchange win protection from its creditors earlier this year. The judge said on Tuesday that the request – which per Bloomberg was protested by lawyers representing the creditors – would be deferred to another day. Robertson’s lawyer stated that she wanted to step away from the case as she felt she was “not versed” in cryptocurrency-related matters, and had rejected taking on a directorial role in the firm.

The same judge also approved the appointment of senior VP Peter Wedlake, of auditing firm Grant Thornton, as QuadrigaCX’s new acting chief restructuring officer.

Meanwhile, south of the border in the United States, a city in New York has lifted a ban on crypto mining. According to media outlet WAMC, Plattsburgh’s city council voted 5:1 in favor of a motion to overturn an 18-month ban on new mining projects imposed in March last year by the city’s mayor.

Electricity prices had been driven up across the board for local residents following a spike in mining activities in the area.

The CEO of a Plattsburgh cryptocurrency mining firm told the same media outlet, “The price of Bitcoin and cryptocurrencies in general has gone down substantially, but there is still some opportunity […] I think Plattsburgh will have some industry come in and this will be a great place for some data centers in the future.”