Claiming Maintenance Issues, Crypto Exchange QaudrigaCX Goes Offline

Crypto Exchange

According to an announcement on its webpage on Jan. 28, Canadian cryptocurrency exchange QuadrigaCX is down for maintenance. The exchange is inaccessible as of press time and is wrapped up in legal troubles with the Canadian Imperial Bank of Commerce (CIBC).

In the status, QuadrigaCx stated that their site is down for maintenance and they apologize for any inconvenience this may cause. The status also mentioned that they will keep the customer’s know about further updates.

QuadrigaCX Status Update

The exchanges users took to Reddit and Twitter some of whom have purportedly been unable to access or withdraw their funds for months. Some users felt that the exchange’s customer should have been informed before taking it down. Some users also speculated as to whether the exchange had gone insolvent, on a Reddit post. One of the users also stated, that if the case arises the cryptocurrency exchange will declare insolvency only because of an inability to find a suitable bank to host their account and facilitate transfers.

The exchange disputed a $19.6 million sum with the CIBC in October 2018.  QuadrigaCX had been experiencing difficulties accessing $16.3 million of its funds since January, as reported by Globe and Mail when the IBC froze five accounts which belonged to the exchange’s owner, Jose Reyes and its payment processor, Costodian Inc.

CIBC had then requested the court to withhold the funds and requested to determine whether they belong to the exchange, Costodian, or the users who deposited the funds. Agreeing that the owner of the funds is not clearly established, the Ontario Superior Court then ruled in favour of the bank. In order to identify the owner of the money, CIBC was then obliged to pass the funds over to the Accountant of the Superior Court.

Gerry Cotten, the exchange’s founder’s apparent death has made the situation further complicated. referenced by the exchange in a Reddit post, a statement regarding the sudden passing of Cotten has been stated, which is no longer available as the site is down.

While one even posited the theory that the exchange could not access assets in cold storage, as the keys were only known to Cotten, following the post, some users asked for proof of death.

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