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The QuadrigaCX case continues at Canada's Nova Scotia Supreme Court. The judge has now ruled that the company who ran the exchange should transition into bankruptcy proceedings, reports Vancouver's The Star.
The bankruptcy ruling handed down by Judge Michael Wood is likely the result of a recommendation from auditing firm Ernst & Young, which is acting as the monitor in the case.
Read more: QuadrigaCX: Exchange may go into bankruptcy
For a time, representatives for the company were discussing a restructuring in order to recoup funds for creditors while still keeping QuadrigaCX active as an entity, but this is no longer a feasible option. The widow of the deceased CEO Gerald Cotten, Jennifer Robertson, and another director had both requested to be removed from the process, and the possibility of retrieving the lost $135 million worth of crypto seemed increasingly unlikely.
The bankruptcy proceedings will not start immediately, as the exchange is still in the period where it is temporarily protected from creditors' claims, and this stay may be extended again. The judge has also ruled that Jennifer Robertson's assets should be frozen, as there is still suspicion that the company's funds may have been misused.
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