Crypto-exchange, QuadrigaCX wants to avert insolvency
Home News crypto-exchange, QuadrigaCX want insolvency to avert
Matthias Nemack –
QuadrigaCX is in a crisis. Now, the canadian stock market has made what appears to be a request for creditor protection.
QuadrigaCX is a month-long media attack
Rumors of more or less serious problems with the company QuadrigaCX from about three months. Now seems to confirm that there is in the crypto exchange based in Canada, in fact, difficulties of more serious nature. The end of the month was made public, that the stock exchange can be traded on the in addition to the Bitcoin to a whole range of other digital currencies, and now the creditor protection sought or submitted. This step was taken by the competent Supreme court in the state of Nova Scotia in the platform-native Canada. The message comes from the company itself.
The amount of the debt is not yet exactly known
For customers in the stock market, this news is good and bad at the same time. The Information means that there are really economic problems in what has long been speculated. In October of last year, QuadrigaCX had to fight already, according to various media with debts in the tens of millions. At the beginning of this year, subject portals reported then about account closures at the stock exchanges-the owner of Jose Reyes and his payment service provider to the other provider. The creditor-protection request is also an opportunity, as it is said in a press release by the stock exchange. The application promises to be the elimination of financial worries, especially the loads of the customers should be of no consequence to be eliminated.
Client funds from company funds to be sought
At the same time the stock market operates according to its own statement, in Cold Wallets own reserves in crypto-currencies to track and protect. Here, after the death of the former boss allegedly problems, because only this should have been the key to the Wallets known. So anyway, a number of critics have conjectured. Industry experts values the protection of creditors in case of success, as an important step in order to remain capable of action and to avoid a company bankruptcy. And of course the customer should pay the bill for the impending bankruptcy.
The rescue attempt comes in the nick of time?
The basis for the protection of creditors in the agreements to the CCAA, the Companies Creditors Arrangement Act are in this connection. Now an independent expert (here, it should be involved in the consulting company Ernst & Young)) during the administrative proceedings as an observer. A bankruptcy is in crypto forums discussed, however, because of the different “construction sites” in the crypto-exchange.