'What happened at Quadriga was an old-fashioned fraud wrapped in modern technology.'

One cryptocurrency exchange has gone into receivership and another is under scrutiny by the B.C. securities regulator after the websites for both recently went dark.

Justice Darlene Jamieson said during the hearing Wednesday the case is challenging because QuadrigaCX "lacked books and records" and auditors are unable to speak the deceased owner.

Officials agree that cryptocurrencies pegged to real currencies will have to meet "the highest standards" of financial regulation.

QuadrigaCX was one of Canada's largest cryptocurrency exchanges before it was shut down amid a storm of controversy in January.

Vancouver-based QuadrigaCX was shut down in January after its founder and sole director, 30-year-old Gerald Cotten of Fall River, N.S., died Dec. 9 while travelling in India.

Embattled cryptocurrency exchange QuadrigaCX has received a reprieve from its creditor protection deadline as the search for nearly $200 million in missing virtual currency continues.

More than 115,000 users of the Vancouver-based QuadrigaCX platform are owed about $260 million in cash and cryptocurrency following the demise of the unregulated company on Jan. 28.

The Nova Scotia Supreme Court granted QuadrigaCX temporary protection from its creditors on Feb. 5. A court-appointed monitor is searching for the missing money. The company could be sold.

There are new questions surrounding Quadriga, whose Nova Scotia founder, Gerald Cotten, reportedly died of complications from Crohn's disease.