In 2019, perhaps one of the biggest cases to hit the cryptocurrency industry was the QuadriaCX case in which hundreds of millions of dollars were lost after being stored in a cold wallet that only the company’s deceased CEO had access to.
The case saw mainstream attention and also drew attention to the issue of cold wallet security and ensuring that such incidents do not repeat themselves. However, those who lost their money in the incident have yet to recover them and there have even been rumors of this being an exit scam and CEO faking his own death. Now EY, who was appointed by the court overseeing the case for bankruptcy proceedings has now requested that the case be moved from Halifax to Toronto.
Details About the Case
According to EY, the reason the case needs to be shifted to Toronto is that the involvement of several law-enforcement agencies has added to the complexity of the case and has shifted focus to entities that are within Ontario and this makes their job more difficult. This request was made tp a Novia Scott court and was reported on August 28, 2019.
The financial crime divisions of both the Federal Bureau of Investigation and the Royal Canadian Mounted Police are involved and QuadrigaCX’s creditors have approved a change of jurisdiction.
EY has also stated that moving the case will save cost as many of the professionals who are you involved in the case are based in Ontario and there are multiple court proceedings that are anticipated. Bankruptcy proceedings began earlier this year after it was determined that the funds would be difficult to recover but there still pressure on both the now-defunct exchange and their legal representation to get to the root of the matter and refund whatever money they can find to the victims of the incident.
This story has certainly been one of the strangest in the cryptocurrency world in that the firm not only lost hundreds of millions of dollars lost but the company inadvertently transferred another 103 bitcoins to the same cold wallet they do not have access to and this further complicated the case. Regardless of the outcome of this, in the end, the QuadrigaCXwill certainly go down as one of the most complicated and interesting legal cases in cryptocurrency history.