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Law firms selected to represent users owed millions from QuadrigaCX platform

Nova Scotia Supreme Court is seen in this file photograph. File/ Global News

A Nova Scotia judge has selected two law firms to represent users of the insolvent QuadrigaCX cryptocurrency exchange who are owed about $260 million.

Justice Michael Wood of the Nova Scotia Supreme Court issued a decision today saying he had appointed Miller Thomson of Toronto and Halifax-based Cox & Palmer as representative counsel.

Wood says both firms have extensive experience with insolvency cases, and he noted that Miller Thomson has expertise when it comes to cryptocurrency.

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READ MORE: Over $450K in QuadrigaCX cryptocurrencies lost in inaccessible ‘cold wallets’: report

As well, the judge approved of their communication strategy, which includes the use of social media and online discussion groups to reach 115,000 affected users.

Both law firms have also agreed to cap their fees at this stage of the court proceedings, though the cap was not spelled out in Wood’s decision.

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The Vancouver-based exchange was shut down Jan. 28 following the sudden death in December of its CEO and sole director, 30-year-old Gerald Cotten of Fall River, N.S.

READ MORE: Researchers find little trace of Quadriga’s stuck millions on the blockchain

Court documents say $190 million in missing cryptocurrency is locked in offline digital wallets – but they are beyond the reach of the company because Cotten was the only person who had the encrypted pass codes.

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