Cryptocurrency Exchange

Canada’s Big Banks Reveal Concerns over Cryptocurrency Assets in Quadriga Case

QuadrigaCX-Update-01

The skepticism of Canada’s big banks for the whole cryptocurrency industry was on full display Friday when a Nova Scotia judge issued an order for the eventual disbursement of more than $30 million in bank drafts tied to the QuadrigaCX insolvency case.

Lawyers for the Bank of Montreal and the court-appointed monitor overseeing the case, Ernst and Young, said that the banks were not very comfortable managing money from the cryptocurrency world, saying the uncertain origin of the funds raises concerns about possible money laundering.

Justice Michael Wood of the Nova Scotia Supreme Court after the hearing ruled an order that would eventually see the money deposited in a Royal Bank account, which Ernst and Young will use to pay for the ongoing court proceedings.

As per the ruling, the money could be used to partially compensate 115,000 users of the QuadrigaCX exchange who are owed $260 million following the demise of the virtual operation on Jan. 28 amid a swirl of controversy as well.

It should be noted that the case attracted international attention last month when the company revealed its CEO and sole director, Gerald Cotten of Halifax, had died suddenly on Dec. 9 while traveling in India. He left his company without access to about $190 million in Bitcoins and other cryptocurrencies.

As per the CEO’s widow, Jennifer Robertson, Cotten was the only member of the QuadrigaCX team who knew the encrypted passcodes needed to access the company’s cryptocurrency reserves.

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