The lawyers in charge of the court case involving crypto exchange, QuadrigaCX could resort to selling off the business to raise money to pay off victimized users according to a report by CBC on Tuesday.
Before considering that step, however, the lawyers will wait for the result of a third-party appointed by the court to try and retrieve access to the exchange’s cold wallets. The court had ordered QuadrigaCX executives to turn in the laptop containing the missing private keys to the third-party whom reports identify as an ex-RCMP computer expert.
If the private keys are not retrieved, then the request of QuadrigaCX lawyers to institute a 30-day stay of proceedings becomes valid. The exchange operators will use the grace period which ends on March 7 to try and retrieve the missing funds.
If unable to do so too, the report suggests the lawyers representing QuadrigaCX will sanction the sale of the business to a new entity which will allow it to raise the amount users have kept with the exchange.
Overview Of The QuadrigaCX Case
The Canadian-based crypto exchange has been on the spotlight in recent weeks after its CEO Gerald Cotten died while on vacation in December 2018.
As per the story, the deceased CEO is the only one who has access to the private keys used to store customer funds in the exchange’s cold wallet (offline crypto wallet). The wallet is believed to hold up to $190 million which users have deposited on the exchange and has since been denied access to.
QuadrigaCX's case is the first time that such a situation has arisen in the crypto industry, with any final decision about the case likely to become a precedent.
Meanwhile, records of hack attacks on cryptocurrency exchanges are not new to industry participants. In recent time we reported a breach of peer-to-peer crypto exchange LocalBitcoins as well as the conviction of a U.K citizen who stole $11 million worth of IOTA tokens in 2018.
Subscribe to our Telegram channel to stay up to date on the latest STO and crypto regulations news