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A Nova Scotia supreme court justice has chosen the legal representatives for clients of Canadaâs major crypto exchange QuadrigaCX.
The Supreme Court of Nova Scotia has ordered Canadian law firms Miller Thomson and Cox & Palmer to represent customers of cryptocurrency exchange QuadrigaCX in upcoming proceedings. The ruling was announced in a court filing published on Feb. 19.
On Tuesday, Justice Michael Wood rendered a decision that Miller Thomson and Cox & Palmer will act as lead counsel to represent the representative committee of users of Canadaâs major cryptocurrency exchange Quadriga.
Specifically, the representative counsel will be responsible for âmanaging communications with users; acting as user liaison for the monitor [Ernst & Young]; advocating for user interests before the court; identify[ing] potential conflicting interest amongst users; and advocating for user privacy.â
In the filing, Wood says that the proceedings should concentrate on efficiency and cost effectiveness, and that the counsel should not have open-ended retainers and undertake inquiries where they can exact fees from the exchangeâs assets. The filing further explains:
âRepresentative counsel can make the proceeding more efficient and cost effective for all parties by providing a clear mechanism for communicating with the stakeholders and avoiding a multiplicity of potentially conflicting retainers.â
While the next hearing is scheduled on March 5, 2019, Justice Wood stated in the filing that he âexpect[s] that representative counsel, the Monitor and the Applicants should be able to come to an agreement on most, if not all, of the terms of the order which could then be presented to the Court for consideration.â
Woodâs decision follows a hearing on Feb. 14, when the Nova Scotia Supreme Court brought together over âa dozenâ lawyers who were vying to represent the 115,000 cryptocurrency traders owed around $260 million ($195 million) by QuadrigaCX.
On Feb. 13, Cointelegraph reported that Ersnt & Youngâs recently released report dubbed âFirst Report of the Monitorâ stated that âon February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately $468,675 to Quadriga cold wallets.â Quadriga has purportedly been unable to access its cold wallets as its recently deceased found Gerald Cotten was solely responsible for the wallets and corresponding keys.
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