The Nova Scotia court has appointed representative counsel for the proposed user committee for QuadrigaCX creditors. The court dismissed a hearing last week where Justice Michael Wood declared that the representative counsel would be chosen within the next five days.
The three law firms competing for the position of representative counsel were Bennett Jones with McInnes Cooper, Miller Thomson with Cox and Palmer and Osler, Hoskin and Harcourt with Patterson Law. A ruling filed by the Nova Scotia court dated February 19 states that Miller Thomson with Cox and Palmer has been chosen as representative counsel for 115,000 customers of Quadriga.
“Both the local and national firms have extensive insolvency and CCAA experience. Miller Thompson has added depth in certain areas, including larger CCAA proceedings and cryptocurrency,” argued Wood. Wood cited in the ruling that Cox and Palmer will deal with “local litigation practice and court appearances” while Thompson will “provide expertise in dealing with large creditor groups and cryptocurrency technology”.
Wood explained that their application for representative counsel to the court shows a thorough understanding of the financial implications of the case. He elaborated that they have a clear idea that the legal fees will be ultimately paid by the users themselves. “They recognize the efficiency to be gained by working collaboratively with the Monitor,” added Wood.
Some of the duties that the representative counsel will carry out are managing communications with the users, acting as an intermediary between the court-appointed monitor and the users, voice the concerns of the users to the court and advocating for user privacy.
QuadrigaCX, the Canadian crypto exchange, fell into a quagmire after the death of its CEO Gerald Cotten which left $196 million user funds trapped in his laptop. Cotten’s wife Jennifer Robertson confessed that she did not know the password or the recovery key to unlock the laptop. The firm declared that they couldn’t access the funds because they were kept in cold storage on Cotten’s laptop to which he had the sole access.
Image via Shutterstock