Crypto exchange QuadrigaCX files for creditor protection

posted over 1 year ago
Canadian crypto exchange QuadrigaCX is filing for protection from creditors, a step taken to avoid bankruptcy. It filed “an application for creditor protection in accordance with the Companies’ Creditors Arrangement Act,” as part of a move to “address” financial issues.

In its application, QuadrigaCX is asking the Nova Scotia Supreme Court to appoint professional services firm Ernst & Young to act as independent third party to oversee its proceeding, specifically to “restructure their affairs.” Filing an application is generally done to try and avoid bankruptcy under Canadian law, as well as provide creditors to “receive some form of payment.” Quadriga said it is unable to access funds in their cold wallets, suggesting the exchange is not currently in possession of its cold wallets or keys.
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