- As per Ernst and Young, the Quadriga victims will benefit if the company files for bankruptcy.
- EY also stated that have tracked the third-parties who are holding the exchange’s funds and they might require a court order to seize them.
‘Ernst and Young (EY), the court-appointed monitor of QuadrigaCX, published a report where they advised the troubled exchange to file for bankruptcy. The report outlined that the victims of the QuadrigaCX debacle will benefit if the company transitions from the ongoing restructuring process to a bankruptcy filing under the Bankruptcy and Insolvency Act (BIA).
As per the report:
“Transitioning from the CCAA to the BIA will streamline the administration of the proceedings, reduce the level of professional involvement and provide enhanced investigative powers for the Trustee,” EY stated on the report.
As set out in previous reports of the Monitor, the current objective of these CCAA proceedings is data and asset recovery. Given the present circumstances, the possibility that Quadriga will restructure and emerge from CCAA protection appears remote.”
In the report, EY stated that they had tracked the third-parties who are holding the exchange’s funds and they might require a court order to seize them. EY also indicated that Black Banx, formerly known as WebBank 21, is holding around $6.7 million of Quadriga’s money and has not responded to EY’s request.
The report concludes that Court should “approve the transition of the CCAA administration into bankruptcy proceedings under the BIA and grant the Transition Order, the Asset Preservation Order and the Third Party Payment Processor Order, each in the form sought by the Monitor.”
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