EY reports another bitcoin loss at QuadrigaCX

Posted 13 February, 2019

Canada's troubled and infamous cryptocurrency exchange QuadrigaCX made its mark again. It recorded another loss of the funds last week. Along with the debts to its clients reaching $190 million, the exchange lost another $370,000 by a mistake.

One of the major world audit companies Ernst and Young that was appointed as a financial supervisor of  QuadrigaCX by a court has released the first report which states that the platform's management accidentally transferred more than 100 bitcoins to a cold wallet. For reference, the company is said to have no access to its cold wallets and thus it is unable to refund the clients.

As the document reads, the new accident happened on February 6.

"Quadriga inadvertently transferred 103 bitcoins valued at approximately $468,675 to Quadriga cold wallets which the Company is currently unable to access. The Monitor is working with Management to retrieve this cryptocurrency from the various cold wallets, if possible."

For reference, QuadrigaCX filed an application for creditor protection in early February. The exchange stated that they could not pay back funds since the only holder of private keys for the cold wallets where almost all funds were kept died in India last December. Canada's court approved the application and provided the platform with temporal protection, while EY was appointed as a monitor for the financial process at the exchange.

According to the released report, EY will also take measures to transfer the remaining crypto assets of the company to its own cold wallet.

"The Monitor has made arrangements to transfer the remaining cryptocurrency (Bitcoin 51.12008035; Bitcoin Cash SV 0.01353067; Bitcoin Cash 33.31348647; Bitcoin Gold 2,032.65853677; Litecoin 822.26686907; and Ether 951.49917091) into a cold wallet which will be retained by the Monitor pending further order of this Court," reads the document.

The auditing company keeps taking measures to settle the problem with access to the cold wallet and looking for possible ways to find the keys. Specifically, EY will withdraw the devices that could belong to QuadrigaCX ex-CEO Jerald Cotten.

The company also reports cooperation with third-party processing services to get back access to fiat funds. However, these attempts are yet to bring any fruits.

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13 February, 2019 13:23

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