Canada’s largest cryptocurrency exchange is due in court on Tuesday as it seeks creditor protection in the wake of the sudden death of its founder and chief executive in December and missing cryptocurrency worth roughly $190 million.
Vancouver-based QuadrigaCX says it filed an application for creditor protection on Jan. 31 and the Nova Scotia Supreme Court will be asked on Feb. 5 to appoint a monitor to oversee the proceedings.
In an affidavit, the widow of Gerald Cotten, Quadriga’s founder, CEO and sole director, said he died suddenly on Dec. 9 due to complications from Crohn’s disease.
Court filings show that after his death, Quadriga employees have been unable to locate or access roughly $190 million worth of digital money.
The company says in a statement that it has been trying to “locate and secure our very significant cryptocurrency reserves,” for several weeks, but “unfortunately, these efforts have not been successful.”
In Quadriga’s legal filings it says it currently owes roughly 115,000 users $70 million in currency, plus an additional $180 million worth of cryptocurrencies, based on market prices in December — most of which can’t be accessed.
Court documents show that Quadriga had been facing liquidity issues over the past year but a major issue arose in January 2018 when CIBC froze roughly $25.7 million of its funds held in the account of a third-party processor.