$1.7M In QuadrigaCX Bitcoin Wakes After Years

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It was assumed that the wallets had been inaccessible after the creator of the exchange passed away in 2018, as he was the only person accountable for the private keys of the wallets, and he was the only one who possessed those keys.

After years of dormancy, it was recently revealed that five accounts related to the defunct Canadian cryptocurrency exchange QuadrigaCX were abruptly exchanging around $1.7 million worth of Bitcoin. It had been thought that these wallets did not exist prior to the recent finding, which disproved this theory.

A researcher in the cryptocurrency field by the name of ZachXBT issued a warning to the cryptocurrency community on December 19 in the form of a tweet. The message focused on the five wallets that moved around 104 Bitcoin to other wallets.

The information that has been preserved on the blockchain indicates that the wallets have not moved any Bitcoin since at least April of 2018.

After the demise of its founder and CEO, Gerald Cotten, in December 2018, QuadrigaCX was formerly the most prominent bitcoin exchange in Canada. Gerald Cotten passed away. Nonetheless, in April of 2019, the exchange made the announcement that it was going to seek protection under the bankruptcy laws. Cotten was the sole individual who had knowledge of the private keys to the wallets used by the exchange.

At the time of its failure, roughly 155,000 clients were owed a total of nearly $200 million in cryptocurrencies.

According to a report that was published in February 2019 by Ernst & Young, one of the Big Four accounting firms that was overseeing the exchange’s estate, on February 6, 2019, QuadrigaCX made an accidental transfer of approximately 103 BTC to cold wallets that were only accessible to the deceased Cotten.

The overall value is really close to being exactly the same as the most recent transaction volume in Bitcoin.


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BlockFi Petitions To Restore Wallet Users’ Frozen Crypto


The cryptocurrency lending platform BlockFi has submitted a request to a bankruptcy court in the United States for permission to recover customers’ crypto assets that were stored in BlockFi wallets.

The defunct cryptocurrency lending platform BlockFi has submitted a petition to a bankruptcy court in the United States, demanding permission to enable its customers to withdraw digital assets that are now stored in wallets provided by BlockFi.

The lender sought the court for power to recognize customer withdrawals from wallet accounts that have been blocked on the platform since November 10. The application was filed on December 19 with the United States Bankruptcy Court for the District of New Jersey.

Additionally, authorization is requested in the court proceedings to update the user interface in order to accurately represent transactions since the stoppage in platform operations.

BlockFi referred to the move as a “essential step toward our aim of recovering funds to customers via our chapter 11 proceedings” in an email that was addressed to users who were impacted and extensively circulated.

According to BlockFi, the stop that has been placed on the processing of withdrawals and transfers from BlockFi Interest Accounts will not be lifted as a result of this action.

The online lending platform has also made it clear that it intends to seek similar remedies from the Supreme Court of Bermuda in relation to BlockFi Wallet Accounts that are stored at BlockFi International Ltd.

According to the paperwork filed with the court, there will be a hearing on January 9 to determine whether or not the application will be granted.

On January 13, the Supreme Court of Bermuda is going to hold a separate hearing on wallet accounts that are maintained at BlockFi International Ltd.

On November 11, BlockFi recommended that customers refrain from depositing funds into their BlockFi wallets or Interest Accounts, citing a lack of clarity on FTX as the reason for the request.

On November 28th, BlockFi submitted their application for Chapter 11 bankruptcy, which included all eight of its companies.

On the very same day, a petition for bankruptcy was submitted to the Supreme Court of Bermuda by BlockFi International.


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The Bank Of Canada Stresses Stablecoin Regulation When Legislation Is Presented

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Following the failure of the Canadian government to contemplate legislation, experts from a central bank have penned a letter in which they assert that regulation is necessary in order to realize the advantages of fiat-referenced cryptocurrency assets.

On December 19th, members of the Bank of Canada’s staff published an analytical report on stablecoins, often known as fiat-referenced cryptocurrency assets.

In addition to a discussion of the processes that may be used to create and distribute stablecoins, as well as a rundown of the possible dangers and advantages associated with using them, the writers of the letter voiced their support for more regulation of the cryptocurrency asset.

Between the beginning of 2020 and the middle of 2022, the worldwide market for crypto assets that are referred to fiat currencies expanded 30-fold, reaching a total value of $161 billion in U.S. dollars.

According to the note, their primary use is on platforms that facilitate cryptocurrency trading; but, they might have a broad range of other applications as well, particularly when combined with smart contracts.

Especially in an economy that is becoming more digitized, the introduction of these cryptoassets might bring higher levels of efficiency and competitiveness to the payment services industry. On the other hand, if there were no protections in place, they may present substantial threats to the integrity of the financial system 

Due to the high concentration of these coins and holders, any changes that occur to them might have a disproportionately large effect on the economy as a whole.

According to the paper, even though there has been advice provided by international standards-setting groups about the regulation of fiat-referenced cryptoassets, most current regulatory systems, in Canada and overseas, are not at present suitable for purpose.

The message was probably most fascinating when seen in light of the current regulatory climate around cryptocurrencies in Canada.

In February, the Encouraging the Growth of the Cryptoasset Sector Act, also known as Bill C-249, was presented into the House of Commons of Canada.

The crypto community in Canada was generally on board with the measure, but it ended up being politically controversial and was ultimately put to rest after its second reading.


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