Quadriga was officially declared bankrupt in the beginning of April following the approval by the Nova Scotia Supreme Court Justice Michael Wood, and EY recommendation that it should be declared bankrupt earlier that month. The bankruptcy “would allow for the potential sale of assets, including but not limited to Quadriga’s operating platform,” as well as streamlining administrative burdens and cutting procedural costs.
As previously reported, Quadriga filed for creditor protection when — following its co-founder Gerald Cotten death — it lost access to its cold wallets and corresponding keys, that ostensibly held the assets owed to its clients.
In March, EY identified six separate crypto wallets that were used primarily to store bitcoin (BTC), the cryptocurrency most used on the platform. Apart from one inadvertent transaction of bitcoin amounting to nearly $500,000, there have been no deposits in the wallets since April 2018.
