Last October, QuadrigaCX out of Vancouver, Canada, reported that its banking partner had seized as much as $21.6 million in assets in a dispute that dated back to the beginning of the year. The seizure came as the banks asserted that the platform had not been able to identify the true owners of the funds, a claim that was later substantiated by Vancouver courts. That opinion was overturned in December, when QuadrigaCX won its case on appeal. However, users are reporting that they are still not able to access their funds.
The dilemma may not find a peaceful resolution anytime soon, either. The company’s founder and CEO, Gerald Cotton, passed away from complications stemming from his battle with Crohn’s disease in the weeks following up to the exchange’s latest appearance in court. That unexpected death and the mountain of withdrawal requested that had grown while the funds had been frozen, were causing delays in the exchange’s ability to process requests and also forced it to implement daily withdrawal limits.
However, QuadrigaCX is actively trying to resolve the issues. It sent an email to its customers this past Tuesday, explaining that it was “slowly” processing withdrawal requests and that staff members were “actively working on having the funds deposited and distributed.”
The company’s interim president and CEO, Aaron Matthews, stated in the email, “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.”
One frustrated user told CoinDesk that he had filed a number of support tickets in an effort to withdraw his funds. He added, “If only the [QuadrigaCX] customer support were better I think it could go a long way, and it’s not like they aren’t active. I see them on Reddit and Facebook and Twitter answering minor questions about cash pickup times etc., but they don’t answer any of the big questions we have regarding the CEO’s recent death.
“The fact that it happened a month ago, and they just announced it now, and no proof of death, no obituary, no linkedin [sic] profiles of any of the staff, no physical addresses, limited crypto withdrawal limits, etc all makes people suspicious.”
The debacle continues even after the courts sided with the exchange. Almost all of the funds had reportedly been unfrozen, but QuadrigaCX was forced to find a new banking partner. The frozen funds are being held by a payment processor, Billerfy, which indicates that it is having difficulty finding a bank to accept the payment drafts. The company’s managing director and owner, José Reyes, states that the drafts have been endorsed, “but no banks have the appetite to take the drafts so we are looking around for crypto-friendly banks that will take the drafts so we can use it to payout clients. Even lawyers are having a hard time getting a bank.”
There has still been no official announcement from QuadrigaCX regarding when it will be able to finish processing the withdrawals. However, it hopes to “return to normal operating levels regarding withdrawals and punctual timelines” once it catches up with the current backlog.
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