Ernst and Young recommended declaring the QuadrigaCX crypto exchange bankrupt
IN new report audit firm Ernst and Young (EY), appointed by the court to oversee the further development of the situation around the Canadian crypto-exchanges QuadrigaCX owed his clients tens of millions of dollars, recommends to begin bankruptcy process trade platform.
According to EY, this is the preferred option for QuadrigaCX’s affected lenders., than restructuring in progress.
“Withdrawal of the company of-under the action Of the law on the organization of creditors companies and its translation under The bankruptcy and insolvency law will speed up the process, reduce the level of participation of specialists and provide confidential manager more broad powers for investigation, says EY. – As noted in the controller’s previous report, the current goal of the procedures under the Law about organizations of creditors of companies is an data and asset recovery. Given the circumstances, possibility restructuring Quadriga and protecting the interests of creditors in conformity looks hazy with this law “.
EY claims that the bankruptcy of the crypto exchange will lead to a number of other positive results, including possibility sales her valuable assets and expanding the scope of the investigation without the need for this court permission.
The auditor also informs that during the audit of QuadrigaCX activities “he became aware of cases when the differentiation of corporate funds exchanges and personal the funds of its founder, Gerald Cotten, were not respected. According to the auditor, Quadriga tools could be used to acquisitions assets subsequently stored outside the corporate entity “.