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Court Grants QuadrigaCX Bankruptcy Protection

Court grants quadrigacx bankruptcy protection

Court Grants QuadrigaCX Bankruptcy Protection

Court grants quadrigacx bankruptcy protection

Today, February 5, 2019, a court in Nova Scotia, Canada, granted bankruptcy protection under the Companies’ Creditors Arrangement Act (CCAA) to the embattled Vancouver-based cryptocurrency exchange QuadrigaCX. The court appointed Ernst & Young as monitors to help the exchange locate any funds it could use to reimburse users and ordered a 30-day stay of proceedings.

The exchange initially made the news on January 14, 2019, when the company announced its CEO Gerald Cotten had died in India on December 9, 2018, from complications from Crohn’s disease. News website CoinDesk obtained what appears to be a copy from the Indian government of Gerald Cotten’s death certificate, although his name is misspelled.

On January 31, 2019, the exchange went offline posting a statement that they had filed for creditor protection.

More than a month after Cotten’s death, the exchange announced that he had the only access to the exchange’s cold storage, effectively locking up the exchange’s funds in offline wallets that, allegedly, no one else at the company has access to. Cotten’s widow, Jennifer Robertson, has reportedly hired a security expert to hack into the computer.

In its petition to the Nova Scotia court, QuadrigaCX claimed they didn’t have access to wallets containing $137 million USD in cryptocurrency owned by an estimated 115,000 users. The affidavit claims that QuadrigaCX has 363,000 registered users and owes approximately $190 million USD. Court documents show that one user alone had a balance of approximately $70 million CDN ($53 million USD).

Professional services firm Ernst & Young said they would focus on finding out whether there are any reserves in cold storage and, if there are, how to access them.

In court today, the lawyers for QuadrigaCX said they are considering selling the exchange to pay off funds that are owed. Maurice Chiasson, a lawyer representing QuadrigaCX, has said that, currently, there are several payment processors that hold funds from the exchange.

A number of affected users have retained lawyers and formed class actions to seek restitution. Attorneys for the applicants now have five days to serve the 115,000 customers owed funds with notice of the order.

Published at Tue, 05 Feb 2019 20:12:10 +0000

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BitHub.Africa Announces African Blockchain Opportunity Crowdsale Campaign to Foster Region’s Cryptocurrency Ecosystem

Nairobi-based blockchain startup BitHub.Africa has released its ‘Blockchain Opportunity Campaign’.

The campaign centers around a crowdsale which offers interested parties an extensive report documenting the top 16 brightest blockchain platforms for 2017. The new report comes in the form of a downloadable ebook, for $29.99 and all proceeds will support activities at the company’s new incubator hubs across Africa.

BitHub.Africa was founded by Kenyan Blockchain entrepreneur John Karanja in December 2015 and officially started business operations in Kenya in January 2016. BitHub.Africa is the main commercial Blockchain operator driving the adoption of blockchain technology and solutions across Africa.

Africa is now the fastest expanding market in the world for blockchain technologies, with the rate of startups growing at an exponential rate. BitHub.Africa looks to support bitcoin and blockchain startups akin to the fiat-based ‘M-Pesa’, in the expanding African market. Unlike conventional solutions, the projects supported by BitHub.Africa will provide a convenient and easy way to convert and spend bitcoin and other cryptocurrencies for routine transactions.

In the ‘Blockchain Opportunity Report’, BitHub.Africa has comprehensively analyzed 16 cryptocurrency and blockchain platforms that are believed to have the most potential to cause substantial changes in the sectors of finance, technology, and commerce. The report will be most beneficial to blockchain entrepreneurs, investors, researchers, and enthusiasts.

The cryptocurrency community is beginning to feel the benefits that a decentralized financial ecosystem can provide, with specific applications in mobile and internet-based technology  

Hyperinflation, fraud, and corruption have all affected large parts of Africa in recent times, causing financial difficulties for many of its people. Alternative currencies have an enormous potential to help by giving people more control over their wealth, disrupting traditional mechanisms for international trade, resource management, and governance.

Citizens suffer from overpriced bank fees due to a weakening financial infrastructure, mismanagement, corruption and growing inflation. The increasing adoption of disruptive blockchain technology is helping people combat these issues, but there is still a long way to go.

The use of cryptocurrencies has grown exponentially in the eight years since bitcoin emerged. The market is now flooded with new cryptocurrencies, which is also starting to bear a few adverse effects. One of the problems that have arisen concerns the growing rise of fraudulent cryptocurrency startups and Ponzi schemes like ‘MMM’.

BitHub.Africa’s comprehensive report aims to help cryptocurrency businesses and enthusiasts to avoid some of these fraudulent altcoins and help enthusiasts to make a more informed decision when investing.

The team at BitHub.Africa has been dedicatedly researching all cryptocurrency platforms and analyzing the collected data to determine which of them offers the most innovative solutions to some of the economic and social issues currently facing the African cryptocurrency community.

Proceeds from the $29.99 for each copy of the report will go towards the African Blockchain Opportunity Campaign and aids BitHub.Africa’s mission to increase mass adoption of bitcoin and Blockchain technology across the continent.

Images courtesy of bitcoin PR Buzz

The post BitHub.Africa Announces African Blockchain Opportunity Crowdsale Campaign to Foster Region’s Cryptocurrency Ecosystem appeared first on Bitcoinist.com.

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