Crypto Exchange QaudrigaCX goes offline, claims about maintenance


Canadian exchange of cryptomoedas QuadrigaCX is down for maintenance, according to an announcement on its website on January 28. The exchange, which has been embroiled in legal issues with the Canadian Imperial Bank of Commerce (CIBC), is inaccessible so far.

Screenshot of the QuadrigaCX page. Source: QuadrigaCX

Users of the exchanges, some of whom allegedly were unable to access or withdraw their funds for months, led to Reddit and Twitter. A user I asked"Should not you let your client know before you knock him out?" Some users in a Reddit post speculated whether the exchange had become insolvent. One commentator said: "They will declare insolvency due to an inability to find a suitable bank to host an account and facilitate transfers."

In October 2018, the foreign exchange disputed an amount of US $ 19.6 million with the CIBC. Globe and Mail reported that QuadrigaCX had been struggling to access $ 16.3 million of its funds since January, when the IBC froze five accounts belonging to the owner of the exchange, Jose Reyes and its payment processor, Costodian Inc.

CIBC subsequently asked the court to withhold the funds and determine whether they belong to Costodian, the exchange, or the users who deposited the funds. The High Court of Ontario then decided in favor of the bank, agreeing that the owner of the funds is not clearly established. The CIBC was then required to pass the appeals to the Superior Court Accountant to identify the owner of the money.

The situation is further complicated by the apparent death of the stock's founder, Gerry Cotten. A statement about the sudden approval of Cotten, which is no longer available when the site is inactive, is referenced by the exchange in a post on Reddit.

After the post, some users asked for proof of death, while one even postulated the theory that the exchange could not access assets in cold storage, since the keys were known only by Cotten.


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