Monday, April 22, 2019

Users of QuadrigaCX Cryptocurrency Exchange Are Still Unable To Withdraw Their Funds

Users of QuadrigaCX, a cryptocurrency exchange are still unable to withdraw their funds even after the court had unfrozen $19 million owned by the exchange. According to the latter, one of the reasons for the delay in accessing these funds can be attributed to the demise of Gerald Cotten, QuadrigaCX’s CEO, and founder.

Users are Unable to Withdraw Even After Court Dispute is Resolved

Reportedly, customers are unable to withdraw from QuadrigaCX even after the Ontario Superior Court of Justice released the exchange’s funds for winning the case against the Canadian Imperial Bank of Commerce (CIBC). A court document from December 3 revealed that $25 million in Canadian dollars and $70,000 in U.S. dollars had been refunded to the company.

At a later time, the Bank of Montreal which these funds were moved to, also froze it. However, the financial institution said that they had released it and Billerfy, a payment processor had endorsed the bank drafts. Further reports state that the only problem now is, getting a crypto-friendly bank that will serve as a platform for making payouts to clients.

QuadrigaCX Says CEO’s Demise is Part of the Delay in Withdrawals

The cryptocurrency exchange on Monday sent an email to its customers notifying them that part of the set-back is, as a result, of the demise of the CEO and founder. The latter is said to have passed on, on December 9 due to complications that occurred from Crohn’s disease while he was visiting India.

QuadrigaCX also attributed the delay to a backlog of withdrawals and said that they are being processed gradually. This was confirmed in an email signed by Aaron Matthews, QuadrigaCX’s interim president, and CEO. The message’s content stated that withdrawals are being processed slowly and the team is putting more effort into depositing and distributing these funds.

The CEO also said:

While we don’t have a specific update pertaining to this situation, our goal was to resolve this issue within the next two weeks and we remain committed to that goal.

Withdrawal Issue Stirs Controversy Among QuadrigaCX’s Customers

The exchange’s delay has stirred a lot of controversy among its customers who were assured that within two weeks, they would be able to access their money. Some took to Twitter, Facebook, and Reddit to show their concern. A user was also quick to note the company had waited for a whole month before informing the public of the CEO’s passing.

Asides QuadrigaCX’s issue, BTCNN also reported of Cryptopia, a New Zealand based exchange which was hacked on January 14. According to the company, a significant amount was lost, and the New Zealand Police on January 15 also confirmed this. The security breach is also a major concern to its customers, and an allegation has been made that it could be an exit scam.

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