QuadrigaCX was Canada’s largest cryptocurrency exchange by volume until their website suddenly went offline on January 28, 2019. The exchange reportedly held about CAD $250 million in customer cryptocurrency and fiat. Leading up to the cessation of operations, customers had been reporting on social media that they were experiencing delays with fulfilling withdrawal requests. However, things seriously began to unravel on January 31, 2019 when the message at quadrigacx.com citing maintenance as the reason for being offline – was replaced with a notice that the company had filed with the Nova Scotia Supreme Court for creditor protection. It will likely be some time before investors get a sense of what this all means, but what has been revealed to date paints a portrait of utter dismay. According to a filing with the Ontario Supreme Court of Justice released – November 9, 2019 – Canadian Imperial Bank of Commerce (CIBC) had frozen about CAD $25.7 million linked to QuadrigaCX’s cryptocurrency exchange operations, and which the bank had considered to be disputed funds. The filing suggested that the frozen funds represented money transferred to Custodian Inc. – a processor for QuadrigaCX. Custodian Inc. was reportedly established for the sole purpose of receiving and holding deposits for individuals transacting on the QuadrigaCX platform, however, CIBC observed that the sole officer and director of Custodian Inc. transferred a portion of deposited funds to his personal account with CIBC. QuadrigaCX attributed delays in customer withdrawals to the freezing of funds by the bank according to media reports. Customers took to social media to complain about issues concerning withdrawal requests. On January 14, 2019, a Tweet from the QuadrigaCX account announced that Gerald (Gerry) Cotten – the company founder and CEO – had passed. The affidavit filed in the Supreme Court of Nova Scotia by his widow Jennifer
Cryptocurrency News and Commentary