QuadrigaCX creditors will have to wait for “representative counsel”
The QuadrigaCX case drags on! In a new court hearing that happened yesterday, Nova Scotia Supreme Court judge, Michael Wood, delayed appointing a “representative counsel” that will represent the creditors of Quadriga.
There are three law firms who are currently competing to serve as representative counsel to creditors of QaudrigaCX. Wood said that all the three firms are “eminently qualified” to be the representative counsel. Wood said he would have to analyze the submissions of the firms further to take a decision. He said that there will be a written decision on this in a week.
The three law firms that have applied for the position of representative counsel include Bennett Jones with McInnes Cooper, Miller Thomson with Cox and Palmer and Osler, Hoskin and Harcourt with Patterson Law. These firms are well versed in CCAA matters as Wood has already noted. Therefore, this wouldn’t affect the judge’s choice.
However, the court-appointed monitor who is supervising Quadriga’s current proceedings argued that the solicitor fees should be capped. He added that the cap on the fees should be $100,000. This implies that lawyer charges would be one of the factors that the judge takes into consideration while choosing between the three firms. Also, cryptocurrency and blockchain knowledge of the lawyers of the firm has the potential to sway the court’s decision.
The law firms also cited in the courtroom that they have received numerous creditor requests asking them for representation. One of the lawyers McInnes Cooper said that he has “scores of attestation forms” from creditors. He represents 181 users with claims of $21,911,855.
The court also discussed forming a user committee to allow creditors to voice all their opinions. The next court hearing is set on March 5.
QuadrigaCX, the Canadian crypto exchange, fell into a quagmire after the death of its CEO Gerald Cotten which left $196 million user funds trapped in his laptop. Cotten’s wife Jennifer Robertson confessed that she did not know the password or the recovery key to unlock the laptop. The firm declared that they couldn’t access the funds because they were kept in cold storage on Cotten’s laptop to which he had the sole access.
The recent court hearing didn’t discuss how to retrieve the cryptocurrencies from the cold storage. The hearing also failed to mention the progress of the QuadrigaCX investigation.
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