Connect with us

Anglais

‘Mind-blowing’ gaffes at QuadrigaCX leave cryptocurrency watchers ‘gobsmacked’

Published

on

[ad_1]

Industry observers are in disbelief over the revelation the embattled QuadrigaCX cryptocurrency exchange recently lost track of more than $460,000 in crypto coins.

« I’m totally gobsmacked … that such a thing could happen, » says Manie Eagar, CEO of Vancouver-based DigitalFutures, a business development consultancy that focuses on digital currency and blockchain technologies.

« Whoever took over the reins and is acting as the custodian of these funds should have at least done due diligence to avoid whatever happened. »

The court-appointed monitor overseeing the search for $260 million in cash and cryptocurrency owed to QuadrigaCX users revealed on Tuesday that the exchange had access to $902,743 in online digital assets, stored in so-called hot wallets as of Feb. 5.

Basically, hot wallets are storage accounts that are easy to get in and out of because they are on the internet.

However, Ernst and Young said that on Feb. 6, someone working for QuadrigaCX « inadvertently » transferred 103 Bitcoins valued at $468,675 into a so-called cold wallet that remains beyond the reach of the company. Cold wallets are not fully connected to the internet, which makes them more secure but also next to impossible to access using failsafe plans.

Meanwhile, lawyers were expected to gather Thursday in a Halifax courtroom, where a judge will decide who will represent QuadrigaCX’s creditors.

Insolvency expert Tim Hill said the case is highly unusual, given QuadrigaCX has no offices, employees or bank accounts.

« We certainly haven’t seen anything like this in Nova Scotia — and nothing in Canada that I’m aware of, » he said in an interview.

The Vancouver-based exchange was shut down Jan 28 amid a flurry of speculation about the sudden death of its CEO and lone director, 30-year-old Gerald Cotten, who led his five-year-old virtual business from a home north of Halifax.

Court records say Cotten, who died suddenly on Dec. 9 while travelling in India, was the only person with access to the digital keys needed to access $190 million worth of Bitcoin and other cryptocurrencies.

As well, the insolvent company owes about 115,000 affected users another $70 million in cash.

« Transferring funds to wallets they can’t retrieve money from is really mind-blowing, » said Samir Saadi, professor of finance at the University of Ottawa’s Telfer School of Management.

« They know they don’t have access to those cold wallets and they still managed to make that terrible mistake … It tells us a lot about the company’s practices. There’s no backup plans — nothing. »

The selection Thursday of representative counsel, which will be overseen by Nova Scotia Supreme Court Justice Michael Wood, is part of a court-ordered insolvency process that was set in motion when the virtual company was granted protection from its creditors on Feb. 5.

The purpose of the federal law is to allow insolvent companies owing more than $5 million to continue to operate while drafting a plan to pay off creditors, thereby avoiding bankruptcy.

The court order includes a standard 30-day stay of proceedings, which means creditors are prohibited from filing lawsuits against QuadrigaCX until the order expires. An extension is widely expected to be granted by the court on March 5.

As the Quadriga mystery deepens with little evidence that nearly $250M in assets is locked away where the founder’s will claims they are, here’s a breakdown of some key terms that may help you understand cryptocurrency and how it works. 0:41

Hill, a Halifax lawyer who specializes in insolvency and debt restructuring, said the law firms that will be selected as representative counsel will be paid by QuadrigaCX’s parent company, Quadriga Fintech Solutions.

« There’s a real danger here that there’s going to be no money to pay these guys, » said Hill, a member of BoyneClarke’s business litigation team and a former registrar in bankruptcy.

« Unless they can move quickly to identify some assets, some money, this may not go on too long. People need to be paid. »

The representative counsel will speak for the creditors in court, but there’s nothing stopping creditors from hiring their own lawyers.

Lawyers from across the country have expressed an interest in the case. A courtroom at the Nova Scotia Supreme Court will be back in session on Thursday, trying to decide which law firms should represent the more than 115,000 victims.

Much of the actual money that is owed to creditors is in the form of bank drafts, which the company has failed to deposit in a financial institution because regular banks remain leery of dealing with cryptocurrency businesses.

QuadrigaCX founder Gerald Cotten, who died in December, seems to have run the company from a single laptop with minimal backup plans. (Facebook/QuadrigaCX)

« That’s obviously going to be a challenge, but at some point the court will be asked to assist with that, » Hill said. « The court has very broad authority in these matters. »

One user of the platform, Tong Zou of Orillia, Ont., submitted an affidavit to the court, saying he is owed $560,000.

The professional software engineer said he had been using QuadrigaCX since 2017.

His statement was part of an application to the court to have two law firms — Toronto-based Bennett Jones and Halifax-based McInnes Cooper — appointed a representative counsel.

« After speaking with various affected users, I know that the affected users are very worried, confused and in need of assistance, » Zou said in the affidavit.

He said he was aware of several other users who are owed more than $100,000 — but he said they have chosen to remain anonymous

[ad_2]

Source link

قالب وردپرس

Anglais

‘Business as usual’ for Dorel Industries after terminating go-private deal

Published

on

By

MONTREAL — Dorel Industries Inc. says it will continue to pursue its business strategy going forward after terminating an agreement to go private after discussions with shareholders.

« Moving ahead. Business as usual, » a spokesman for the company said in an email on Monday.

A group led by Cerberus Capital Management had previously agreed to buy outstanding shares of Dorel for $16 apiece, except for shares owned by the family that controls the company’s multiple-voting shares.

But Dorel chief executive Martin Schwartz said the Montreal-based maker of car seats, strollers, bicycles and home furniture pulled the plug on a deal on the eve of Tuesday’s special meeting after reviewing votes from shareholders.

“Independent shareholders have clearly expressed their confidence in Dorel’s future and the greater potential for Dorel as a public entity, » he said in a news release.

Dorel’s board of directors, with Martin Schwartz, Alan Schwartz, Jeffrey Schwartz and Jeff Segel recused, unanimously approved the deal’s termination upon the recommendation of a special committee.

The transaction required approval by two-thirds of the votes cast, and more than 50 per cent of the votes cast by non-family shareholders.

Schwartz said enhancing shareholder value remains a top priority while it stays focused on growing its brands, which include Schwinn and Mongoose bikes, Safety 1st-brand car seats and DHP Furniture.

Dorel said the move to end the go-private deal was mutual, despite the funds’ increased purchase price offer earlier this year.

It said there is no break fee applicable in this case.

Montreal-based investment firm Letko, Brosseau & Associates Inc. and San Diego’s Brandes Investment Partners LP, which together control more than 19 per cent of Dorel’s outstanding class B subordinate shares voiced their opposition to the amended offer, which was increased from the initial Nov. 2 offer of $14.50 per share.

« We believe that several minority shareholders shared our opinion, » said Letko vice-president Stephane Lebrun, during a phone interview.

« We are confident of the long-term potential of the company and we have confidence in the managers in place.”

Continue Reading

Anglais

Pandemic funds helping Montreal businesses build for a better tomorrow

Published

on

By

Many entrepreneurs have had to tap into government loans during the pandemic, at first just to survive, but now some are using the money to better prepare their businesses for the post-COVID future.

One of those businesses is Del Friscos, a popular family restaurant in Dollard-des-Ormeaux that, like many Montreal-area restaurants, has had to adapt from a sit-down establishment to one that takes orders online for takeout or delivery.

“It was hard going from totally in-house seating,” said Del Friscos co-owner Terry Konstas. “We didn’t have an in-house delivery system, which we quickly added. There were so many of our employees that were laid off that wanted to work so we adapted to a delivery system and added platforms like Uber and DoorDash.”

Helping them through the transition were emergency grants and low-interest loans from the federal and provincial governments, some of which are directly administered by PME MTL, a non-profit business-development organization established to assist the island’s small and medium-sized businesses.

Konstas said he had never even heard of PME MTL until a customer told him about them and when he got in touch, he discovered there were many government programs available to help his business get through the downturn and build for the future. “They’ve been very helpful right from day one,” said Konstas.

“We used some of the funds to catch up on our suppliers and our rents, the part that wasn’t covered from the federal side, and we used some of it for our new virtual concepts,” he said, referring to a virtual kitchen model which the restaurant has since adopted.

The virtual kitchen lets them create completely different menu items from the casual American Italian dishes that Del Friscos is known for and market them under different restaurant brand names. Under the Prasinó Soup & Salad banner, they sell healthy Greek options and their Stallone’s Sub Shop brand offers hearty sandwiches, yet the food from both is created in the same Del Friscos kitchen.

Continue Reading

Anglais

Downtown Montreal office, retail vacancies continue to rise

Published

on

By

Some of downtown Montreal’s key economic indicators are heading in the wrong direction.

Office and retail vacancies in the city’s central core continued to climb in the fourth quarter of 2020, according to a quarterly report released Thursday by the Urban Development Institute of Quebec and the Montréal Centre-Ville merchants association. The report, whose first edition was published in October, aims to paint a socio-economic picture of the downtown area.

The survey also found office space available for sublet had increased during the fourth quarter, which may foreshadow even more vacancies when leases expire. On the residential front, condo sales fell as new listings soared — a sign that the downtown area may be losing some of its appeal to homeowners.

“It’s impossible not to be preoccupied by the rapid increase in office vacancies,” Jean-Marc Fournier, the former Quebec politician who now heads the UDI, said Thursday in an interview.

Still, with COVID-19 vaccinations set to accelerate in the coming months, “the economic picture is bound to improve,” he said. “People will start returning downtown. It’s much too early to say the office market is going to disappear.”

Public health measures implemented since the start of the pandemic almost a year ago — such as caps on office capacity — have deprived downtown Montreal of more than 500,000 workers and students. A mere 4,163 university and CEGEP students attended in-person classes in the second quarter, the most recent period for which figures are available. Border closures and travel restrictions have also brought tourism to a standstill, hurting hotels and thousands of local businesses.

Seventy per cent of downtown workers carried out their professional activities at home more than three days a week during the fourth quarter, the report said, citing an online survey of 1,000 Montreal-area residents conducted last month.

Continue Reading

Chat

Sex2 semaines ago

Dix films avec des scènes de sexe non simulées qui ont fait polémique

Sex2 semaines ago

Sexe et cannabis : mélange miraculeux ou poison pour le couple ?

Sex2 semaines ago

Chantage émotionnel, dénigrement, harcèlement sexuel : Une jeune scientifique écrit aux comités nationaux d’éthique

Sex2 semaines ago

10 films sur le sexe et le plaisir pour oublier la distanciation sociale

Sex2 semaines ago

Les meilleurs sextoys pour le clitoris

Sex2 semaines ago

Dua Lipa, la reine du melting-pop qui allège le quotidien confiné de ses millions de fans

Sex2 semaines ago

Une série d’ici primée à l’étrange

Technologie3 semaines ago

TELUS adopte une nouvelle promesse de marque

Technologie3 semaines ago

La tech agricole Farmers Edge entre en Bourse à 18 fois ses revenus

Technologie3 semaines ago

NEC Canada accueille Combat Networks en tant que revendeur officiel de UNIVERGE® BLUE CLOUD SERVICES

Technologie3 semaines ago

La relance économique sera verte dans le Bas-Saint-Laurent

Technologie3 semaines ago

Ottawa injecte 2,75 milliards $ pour électrifier la flotte d’autobus au pays

Technologie3 semaines ago

L’entreprise montréalaise Native Touch fait l’acquisition du studio Candy Banners

Actualités3 semaines ago

Lionbridge conclut la vente de sa division d’intelligence artificielle (IA) à TELUS International

Actualités3 semaines ago

Le rôle stratégique et essentiel des métaux rares pour la santé

Actualités3 semaines ago

«Crypto-art» : l’œuvre numérique de la chanteuse Grimes vendue 6 millions de dollars

Actualités3 semaines ago

Un rapport révèle des inégalités pour les femmes de couleur dans les postes de direction canadiens qui font écho au secteur de la technologie

Actualités3 semaines ago

La demande de main-d’œuvre des startups canadiennes montre des signes de reprise au quatrième trimestre: rapport

Actualités3 semaines ago

En attendant la fibre optique

Affaires4 semaines ago

L’Alberta demande à Ottawa d’investir des milliards dans la capture du carbone

Anglais2 années ago

Body found after downtown Lethbridge apartment building fire, police investigating – Lethbridge

Styles De Vie2 années ago

Salon du chocolat 2018: les 5 temps forts

Anglais2 années ago

This B.C. woman’s recipe is one of the most popular of all time — and the story behind it is bananas

Santé Et Nutrition2 années ago

Gluten-Free Muffins

Anglais2 années ago

27 CP Rail cars derail near Lake Louise, Alta.

Anglais2 années ago

Man facing eviction from family home on Toronto Islands gets reprieve — for now

Santé Et Nutrition2 années ago

We Try Kin Euphorics and How to REALLY Get the Glow | Healthyish

Anglais2 années ago

Ontario’s Tories hope Ryan Gosling video will keep supporters from breaking up with the party

Anglais2 années ago

A photo taken on Toronto’s Corso Italia 49 years ago became a family legend. No one saw it — until now

Anglais3 années ago

Condo developer Thomas Liu — who collected millions but hasn’t built anything — loses court fight with Town of Ajax

Styles De Vie3 années ago

Renaud Capuçon, rédacteur en chef du Figaroscope

Anglais2 années ago

This couple shares a 335-square-foot micro condo on Queen St. — and loves it

Mode2 années ago

Paris : chez Cécile Roederer co-fondatrice de Smallable

Anglais2 années ago

Ontario Tories argue Trudeau’s carbon plan is ‘unconstitutional’

Styles De Vie2 années ago

Ford Ranger Raptor, le pick-up roule des mécaniques

Affaires2 années ago

Le Forex devient de plus en plus accessible aux débutants

Anglais2 années ago

100 years later, Montreal’s Black Watch regiment returns to Wallers, France

Technologie2 années ago

YouTube recommande de la pornographie juvénile, allègue un internaute

Anglais2 années ago

Trudeau government would reject Jason Kenney, taxpayers group in carbon tax court fight

Anglais2 années ago

Province’s push for private funding, additional stops puts Scarborough subway at risk of delays

Trending