Creditors Committee Formed for Collapsed Crypto Exchange QuadrigaCX

A creditors' committee has been formed for users of the failed QuadrigaCX exchange, and it includes a former Mt Gox customer.

AccessTimeIconMar 20, 2019 at 9:15 p.m. UTC
Updated Aug 18, 2021 at 11:01 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Canadian law firms Miller Thomson and Cox & Palmer have appointed a steering committee to help them represent potentially 115,000 former customers of failed cryptocurrency exchange QuadrigaCX.

In a court notice dated March 19 and posted online Wednesday, Miller Thomson announced that it had selected its Official Committee of Affected Users. The committee, made up of QuadrigaCX customers who are affected by the exchange's collapse, will guide the law firm's work as Quadriga and its court-appointed monitor, Ernst & Young (EY), try to recover the exchange's $136 million worth of missing cryptocurrencies.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • According to the legal filing, Parham Pakjou, David Ballagh, Eric Bachour, Ryan Kneer, Magdalena Gronowska, Eric Stevens and Nicolas Deziel have been appointed to the committee, with Richard Kagerer and Marian Drumea assigned as alternates. Both Nova Scotia Supreme Court Judge Michael Wood, who is overseeing the case, and EY have signed off on the committee and alternates.

    Notably, Bachour has experience with another distressed exchange where funds went missing, as a former customer of the long-defunct Mt Gox, according to Tuesday's filing:

    "Bachour is also a creditor of Mt. Gox in 2013, and has direct experience with arbitrage and market trading in cryptocurrency. Through the Mt. Gox process he gained exposure to the legal side of bankruptcy and insolvency."

    Going forward, the committee will "provide input and direction" to Miller Thomson and Cox & Palmer. Specifically, they will be tasked with communicating or responding to communications from other Quadriga creditors, reviewing court documents and other materials filed by the representative counsel and potentially other tasks.

    A total of 119 individuals applied to join the committee, with roughly 960 customers overall reaching out to the law firms to claim losses.

    Image via Nova Scotia Supreme Court

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.