CustodyStress
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Part of the CustodyStress archive of observed Bitcoin custody incidents
CS-00662

Institutional lockout — QuadrigaCX (2019)

Blocked
Case description
The Ontario Securities Commission expanded its investigation into QuadrigaCX in December 2019, seeking additional documents from Cotten's estate. The expanded investigation extended the CCAA process and delayed any potential creditor distributions. Customers who had hoped for a partial distribution before year-end had their hopes deferred further.
Custody context
Stress conditionVendor lockout
Custody systemExchange custody
OutcomeBlocked
DocumentationUnknown
Year observed2019
CountryCanada
Structural dependencies observed
Legal process requiredInstitutional cooperation required
What this illustrates
Before anyone could access the funds, a legal process had to be completed first. Access was not recoverable.
Outcome interpretation
Access was not possible under the reported conditions.
Source
Publicly Reported
Evidence type
News article
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Framework references
Terms guide
Survives
Access remained possible under the reported conditions.
Constrained
Access remained possible, but only with delay, dependence, or significant difficulty.
Blocked
Access was not possible under the reported conditions.
Indeterminate
There was not enough information to determine the outcome.
Single-person knowledge
Recovery depended on information or capability held by one individual who was unavailable.
Institutional dependence
Recovery depended on a third-party institution or service that was inaccessible or uncooperative.
Documentation gap
Recovery depended on instructions that were missing, incomplete, or unclear.
Authority mismatch
The person with legal authority to act did not have operational access, or vice versa.