Bad news for the 115000+ QuadrigaCX users. The British Columbia Securities Commission disassociated itself from any type of action related to the Exchange.
In a letter sent to Bloomberg, Brian Kladko, a spokesman for the British Columbia Securities Commission emphasized that the activities of the BCSC do not include the regulation of QuadrigaCX’s activities. Since the Exchange did not trade financial instruments regulated by Canadian law, the BCSC has no authority to take legal action against the company.
“(The provincial agency) does not currently have any indication that Quadriga CX, the crypto asset trading platform, was trading in securities or derivatives or operated as a marketplace or exchange under British Columbia securities laws, as such, BCSC does not regulate it.”
To date, no cryptocurrency exchange is regulated by the BCSC. This leaves users with nothing more than the option to sue in court, a process that will be extremely lengthy and costly, mainly due to the actions taken by QuadrigaCX to protect itself after the death of its CEO.
It is important to note that currently, the option of a lawsuit is not possible as the Nova Scotia Supreme Court granted the Exchange creditor protection under the Companies’ Creditors Arrangement Act (CCAA). According to an article published by Ethereum World News, QuadrigaCX has one month of protection before any legal action can be taken against the company:
“According to sources, Maurice Chiasson, the disgraced exchange’s lawyer, wants to use the grace period to search for the assets that Gerald Cotten, the founder and one of the only publicly-known C-suiters of the exchange, left behind when he purportedly passed in India due to Chron’s. CBC claims that the assets that Cotten had access to pertain to over 115,000 users.”
During that time, Chiasson hopes to be able to access Cotton’s laptop and find the keys to the cold wallet with the more than 150 million dollars in cryptocurrencies.
It is currently difficult to establish how the events will unfold. The 30 days protection can be extended upon a decision of the Court. Now clients can turn to Ernst & Young Inc. for any legal information as the court gave this firm the task of overseeing the actions performed by the QuadrigaCX team during the CCAA process.