A Nova Scotia judge has temporarily extended QuadrigaCX's reprieve from its creditors to June 28, as the cryptocurrency exchange continues its transition into bankruptcy.
Quadriga Fintech Solutions Corp. and its related companies had been granted protection from their creditors under the Companies' Creditors Arrangement Act (CCAA) on Feb. 5, but it quickly became clear the company had no real assets - and that the process of recovering the missing funds would be difficult.
In the Supreme Court of Nova Scotia, Justice Michael Wood extended an existing stay of proceedings until June 28, unless the CCAA proceedings are terminated before then.
Bankruptcy proceedings are already underway, with the accountancy firm Ernst and Young acting as trustee.
George Kinsman of Ernst and Young declined to give an update on asset recovery efforts following Thursday's hearing in Halifax before Nova Scotia Supreme Court Justice Michael Wood.
Approximately 115,000 former Quadriga clients are owed about C$250m after the company abruptly ceased operations Jan. 28., following the December death of founder Gerry Cotton from Crohn's disease complications while visiting India.
Cotten's widow, Jennifer Robertson, has told the court that approximately C$180m in cryptocurrency is locked up in Cotten's encrypted computers and USB keys. She said Cotten died without sharing the passcodes to release the funds.
So far, Ernst and Young has been unable to access Cotten's devices in its role as court-appointed monitor. A blockchain analysis commissioned by the firm found the "cold wallets" that were supposed to contain the missing cryptocoins have been empty and untouched since April 2018.
As the primary beneficiary of Cotten's will, Robertson owns roughly C$7.5m of Nova Scotia real estate, both directly and through holding companies and a trust.