Cryptocurrency exchanges these days are already going through troubles thanks to bear market. But, a Canadian bitcoin and cryptocurrency exchange QuadrigaCX seems to be trapped in a series of problems.
QuadrigaCX, an exchange which is already wrapped up in legal troubles with the Canadian Imperial Bank of Commerce (CIBC), became inaccessible for several hours. The exchange was also in the news as its CEO and founder died last month. The firm attributed a system upgrade for the inaccessibility of the site. Users of the exchange have expressed inconvenience as they experienced difficulties withdrawing both fiat and cryptocurrency. The platform did not reveal any updates about the situation via its Twitter or Reddit pages. However, at 21:07 UTC on Jan. 28 the QuadrigaCX website stated, “Our site is down for maintenance. We apologize for the inconvenience this may cause. We appreciate your patience and will keep you updated as we know more. Thank you.”
The website also explained that an upgrade is being performed on QuadrigaCX and that they will be back online shortly. Some of the users of the exchange platform considered the maintenance process ‘unexpected.’ While some expressed through the Reddit and Twitter. One of the users inquired, “Shouldn’t you let your customer know before taking it down?” some of them also doubted whether the firm has gone insolvent. Reportedly, due to inaccessibility, many users couldn’t withdraw their funds for months.
Notably, in order to resolve a legal fight with the CIBC, the exchange disputed a $19.6 million sum with the CIBC. CIBC previously froze five accounts of the exchange’s owner, Jose Reyes along with its payment processor, Costodian Inc. After that QuadrigaCX emailed its userbase to affirm that it was progressing toward returning their money. Also, on January 15, the interim CEO at QuadrigaCX, Aaron Matthews noted that the exchange would work to return customer funds “within two weeks.” In QuadrigaCX, there are no officers after the demise of QuadrigaCX founder Gerald Cotten. The company had plans to have a shareholders’ meeting on Friday to elect new officers.