QuadrigaCX Secures 30-Day Protection Against Lawsuits

QuadrigaCX, the Canadian exchange that claimed insolvency after the death of its founder two months ago, was granted creditor protection and a month-long stay of proceedings, Canadian media reported. With 115,000 traders hurt in the recent insolvency crisis, the company may be attacked by lawsuits, and the court decision is a way to diffuse the tension. QuadrigaCX lawyer Maurice Chiasson described the move as “an attempt to call a time-out.” In the meantime, the Nova Scotia police force has begun investigating the case. QuadrigaCX has been widely used in the crypto community, mostly for arbitrage. As new user stories keep surfacing, it turns out the exchange resorted to wire transfers to get fiat on board, using offshore bank accounts and even a bank in Poland to service the requests. This approach is similar to what Bitfinex did for a short time after losing its servicing bank. Read more