QuadrigaCX had no regulatory approval, says Canadian regulator

QuadrigaCX granted creditor protection while it searches for $250M in cryptocurrency More

QuadrigaCX granted creditor protection while it searches for $250M in cryptocurrency More

Cotten, a Nova Scotia resident and CEO of QuadrigaCX, was travelling in India on December 9 when he died suddenly. The client claims to be owed about $560,000 from Quadriga - "one of the largest individual affected users" - according to the affidavit filed in a Halifax court on February 5.

In the statement, BCSC insisted that it is not aware of any business activities carried out by QuadrigaCX that fall under its regulatory scope, and therefore it is not responsible for regulating the exchange, which is making headlines for allegedly losing about $180 million of user funds after its founder Gerald Cotton died with sole access to its cold wallets.

According to Bloomberg Brian Kladko, a spokesman for the British Columbia Securities Commission, revealed the agency now has no indications QuadrigaCX was "operating as a marketplace or exchange under British Columbia securities laws".

To repay its users, the exchange is said to be looking into selling its platform. You see, Cotten was the only person on Earth who had access to the exchange account's passwords. According to a Bloomberg article, the late CEO signed the will on November 27, 2018, just 12 days be he died on December 9.

Canadian Securities Administrators are urging Canadians to be cautious about investing in trading platforms through its awareness campaign.

"The information of his death was communicated to the relevant authorities".

On Tuesday, the Nova Scotia Supreme Court granted QuadrigaCX protection from its creditors and a 30-day stay of proceedings to given the insolvent company time to find the missing currency and draft a plan to restructure or sell the business. However, the Government of Rajasthan's Directorate of Economics and Statistics produced a death certificate, verifying that Cotten had passed away on December 9.

According to Fortis Escorts Hospital, Cotten succumbed to a heart attack on December 9 a year ago.

Later it was confirmed that he was a patient of Crohn's disease.

They said he had complained of watery stools, vomiting, crampy abdominal pain, and was feeling feverish.

"Despite the best efforts of our clinicians the patient could not be revived and was declared dead approximately at 7:26 pm". Additionally, he was also feeling feverish.

Cotten was also registered as CEO of the company since December 2013.

Edwards said he found no evidence of Quadriga controlling any cold storage wallets that held the large amounts the company claims.

Earlier previous year, Quadriga was experiencing difficulties accessing CA$21.6m of its funds, when the Canadian Imperial Bank of Commerce (CIBC) froze five accounts belonging to the exchange's payment processor, Costodian Inc., and its owner, Jose Reyes.

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