QuadrigaCX is entrenched in a major scandal. The Canadian crypto exchange which owes customers $250 million CAD ($190 million USD), is out another $500,000 CAD due to a mistake.
On Tuesday, a preliminary report was released concerning the platform’s progress since filing creditor protection in January. Ernst and Young had been appointed by the court to monitor the issue. During its monitoring, EY reported that 100 bitcoins has been moved by the platform to an inaccessible cold storage wallet. The report stated, “On February 6, 2019, QuadrigaCX inadvertently transferred 103 bitcoins valued at approximately $468,675 [CAD] to QuadrigaCX 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.”
The platform reported that the cold storage wallets were inaccessible because the only one who knew the private keys’ locations was CEO Gerald Cotton, who passed away last December while traveling to India. The remaining hot wallet fund will be controlled by EY. This wallet includes 51 bitcoin, 0.014 bitcoin cash SV, 2,000 bitcoin gold, 800 litecoin, 33 bitcoin cash, and 950 ether.
Several devices have been impounded as well. According to EY,
“various QuadrigaCX electronic devices reportedly owned or used by Gotten within the Quadriga operations”
have been taken control of. This includes devices such as cell phones, laptops, and three USB keys that have been encrypted. The devices are being stored by EY as its forensic team determines how the devices can be accessed.
In addition, EY is cooperating with third-party payment processors to access Quadriga’s fiat balances. No progress has been identified yet. According to previous court filings, QuadrigaCX owes customers $180 million CAD in crypto.