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Claims-Maintenance-Issues

Digital Assets Exchange QuadrigaCX Goes Down, Claims Maintenance Issues

QuadrigaCX, a Canadian cryptocurrency exchange is down for maintenance, as per an announcement on its webpage on Jan. 28. The exchange, which has been wrapped up in a legal quandary with the CIBC, is inaccessible as of reporting time.

The users of the exchange, some of whom have supposedly been helpless to access or pull out their funds for months, took to social media platforms of Twitter and Reddit. One user even complained that users should be at least taken into the loop and informed properly before closing the exchange.

It is to be noted that the exchange disputed a $19.6 million sum with the CIBC, in October 2018. The Globe and Mail then reported that QuadrigaCX had been facing complexities accessing $16.3 million of its funds since January. It is to be noted that the IBC froze five accounts belonging to the exchange’s owner, Jose Reyes and its payment processor, Costodian Inc.

Canadian Imperial Bank of Commerce afterward requested the court to refuse to give the funds and settle on whether they belong to Custodian, the users who deposited the funds, or the exchange. Agreeing that the owner of the funds is not clearly established, the Ontario Superior Court then ruled in favor of the bank. Canadian Imperial Bank of Commerce was then obliged to pass the funds over to the Accountant of the Superior Court in order to recognize the possessor of the money.

The situation has become more complicated by the noticeable death of Gerry Cotton, the exchange’s founder. A statement concerning the unexpected passing of Cotten, which is no longer available as the site is down, is referenced by the exchange in a post on Reddit.

Subsequent to the post, some users asked for proof of death. On the other hand, one user even posted a theory that the exchange could not access digital assets in cold storage, as the keys were only known to Cotten.

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