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The Canadian QuadrigaCX Cryptography Center is seeking creditor protection, a measure taken to avoid bankruptcy.
In a statement posted on its website nearly a week after the portal became inaccessible, the stock market announced that it had filed "an application for creditor protection in accordance with the Act respecting arrangements with creditors." creditors of companies ", as part of the move to" address "financial problems. problems.
In its application, QuadrigaCX asks the Supreme Court of Nova Scotia to appoint the professional services firm Ernst & Young, acting as an independent third party to oversee its procedures.
According to PwC, the law allows companies "in financial difficulty" to "restructure their business". Filing an application is usually done to try to avoid bankruptcy under Canadian law, as well as to allow creditors to "receive some form of payment." "
QuadrigaCX's ranking details were not immediately available.
The declaration continued:
"Over the past few weeks, we have worked hard to solve our cash flow problems, which include trying to locate and secure our very large cryptocurrency reserves held in cold portfolios, and needed to satisfy the deposit balances. cryptocurrency of customers, as well as financial institution to accept the bank drafts that must be transferred to us. "
"Unfortunately, these efforts have not succeeded," he said.
The company plans to release further updates after a hearing, scheduled to take place on February 5th.
Withdrawal delays
The stock market has been struggling for some time now, with customers complaining of withdrawal issues related to both fiat and cryptocurrency on social media.
The FIAT's withdrawal issues related to the exchange are due, at least in part, to a legal battle now being waged against the Canadian Imperial Bank of Commerce, which froze a large portion of QuadrigaCX's funds last year.
A court finally decided that QuadrigaCX should recover the funds, at least part of it, but its payment processor, Billerfy, told CoinDesk that it could not find a banking partner to approve the drafts, which meant that it would not was not able to send currency to the exchange. and as a result, the exchange could not process withdrawals.
In an email to customers earlier this month, QuadrigaCX interim CEO Aaron Matthews said the stock market was hoping to deal with customer withdrawals "within the next two weeks."
It was unclear why customers were lagging behind cryptographic withdrawals, although Thursday's statement suggests that the exchange does not currently have possession of its cold wallets or keys.
QuadrigaCX did not immediately respond to a request for comment.
Image of the Supreme Court of Nova Scotia via Hantsheroes / Wikimedia Commons
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