Home / Altcoins / QuadrigaCX Granted Creditor Protection While it Searches for $250M in Cryptocurrency Social Sharing

QuadrigaCX Granted Creditor Protection While it Searches for $250M in Cryptocurrency Social Sharing

Canada’s largest exchange, QuadrigaCX recently shut down after the death of its CEO, taking with it an estimated USD $190 million worth of customer’s crypto deposits. Now, amid rumors of fraud by the exchange’s operators, claims are emerging that one of its founders is a felon, previously convicted of credit card fraud and identity theft.

A court-requested lawyer will get encoded laptop off as of late perished CEO of QuadrigaCX. 

As per CBC, the laptop that may give access to $190 million of QuadrigaCX customers finances will be given to a screen — an autonomous outsider who is appointed by the court to screen the company’s operations during bankruptcy procedures. As per Jack Julian, CBC’s journalist who is going to the attended the hearing in Nova Scotia’s court yesterday, Feb. 5.


As the assets were stored in a cold wallet, the court believes that the QuadrigaCX case is not a typical bankruptcy. The creditors might consider changing the jurisdiction to proceed with the case, Julian writes in his Twitter, citing the monitor.


Unsurprisingly, accusations of an exit scam are now being made by many of Quadriga’s customers, along with calls for a thorough investigation by Canadian authorities. Although proof of theft has yet to be uncovered, evidence has emerged suggesting that co-founder Michael Patryn is, in fact, convicted felon Omar Dhanani. In 2005 Dhanani and five others pleaded guilty in a US federal court to fraud charges involving the online trafficking of personal identities and credit card information.


As indicated by a January affidavit filed by Cotten’s wife, the exchange clearly has no entrance to its wallets, and the CEO had not left evidence of passwords. The announced number of users influenced is 115,000, with around $250 million CAD ($190 million USD) in cryptocurrency and fiat currency. 



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