The issue with QuadrigaCX has taken a new twist as recent reports indicate that a Canadian judge has chosen legal representation for clients of the exchange. The Nova Scotia Supreme Court has ordered Canadian law firms Cox & Palmer and Miller Thomson to represent the customers of the digital currency exchange QuadrigaCX in the upcoming proceedings. As per the report, the Nova Scotia Supreme Court’s ruling was announced via a court filing on February 19.
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Cox & Palmer and Miller Thomson to Act as Lead Counsel for Quadriga’s Users
This Tuesday, Justice Michael Wood made a decision regarding the matter by ordering Cox & Palmer and Miller Thomson to act as lead counsel to the representative committee of users of QuadrigaCX Canada’s major crypto exchange.
According to the court filing, the range of duties for the representative counsel will be handling the responsibility of “managing communications with the clients; acting as a liaison between the users and the monitor Ernst & Young (EY); advocating for the interests of user before the court; identifying any potential conflicting interests among the users; and advocating for the privacy of users.”
Proceedings Will Focus on Cost Effectiveness and Efficiency
In the court filing, Justice Wood says that the legal proceedings should concentrate more on cost effectiveness and efficiency. According to him, the counsel shouldn’t have open-ended retainers or undertake any inquiries where they have to exact fees from any of the exchange’s assets. According to the filing, Smartereum understands that:
“Representative counsel can ensure that the proceedings are more efficient and cost effective for every party involved by providing a straightforward mechanism for communicating with stakeholders and avoiding any multiplicity of potentially conflicting retainers.”
While the next hearing for the QuadrigaCX saga has been scheduled for March 5, 2019, Justice Wood via the court filing stated that he “expect[s] that legal counsel representing the clients of the exchange along with the Monitor and the Applicants as well as all parties involved should be able to reach a compromise on most, if not ever one, of the terms and conditions of the order which may then be submitted to the Court for due consideration.”
First Report of the Monitor
Wood’s most recent decision to appoint legal representation for clients of Quadriga follows a court hearing on February 14, when the Supreme Court of Nova Scotia brought in over “a dozen” attorneys who were vying to act as lead counsel to the 115,000 crypto traders owed roughly $195 million by QuadrigaCX.
We can take our minds back to an earlier report on February 13, when Ersnt & Young the monitor released its first report called “First Report of the Monitor.” This report stated that “on the 6th of February 2019, Quadriga inadvertently transferred the sum of 103 Bitcoins (BTC) which is equivalent to approximately $468,675 to cold wallets owned by QuadrigaCX.”
Quadriga has reportedly not been able to gain access the aforementioned cold wallets because its recently deceased founder Gerald Cotten was responsible for the cold wallets and their corresponding keys. Keeping over 115,000 creditors waiting for the roughly $195 million they are owed by the exchange. The latest reports show the affected parties can expect things to change in due course as the court is making sure the law is implemented.