- QuadrigaCX shut down in January 2019, following the death of CEO Gerald Cotten.
- Court documents indicate that the creditors are potentially owed $190 million ($250 million CAD).
QuadrigaCX entered liquidation not long ago, aiming to return funds that were owed to their customers. As court-appointed lawyers are assigned to the case, the former users of the exchange are losing their patience, especially considering that it appears that 100 Bitcoins were somehow lost.
It may be hard to remember, but the exchange was once the biggest crypto platform for trading in Canada, but the collapse happened abruptly when Gerald Cotten, the CEO, passed away. Cotten’s widow expressed that customers were owed approximately $190 million ($250 million CAD).
The court overseeing this liquidation, the Nova Scotia Supreme Court, had appointed a Big Four auditor – Ernst & Young – to help with the recovery of funds via monitoring. Miller and Thomson and Cox & Palmer were the counsel to represent the interests of the customers.
Unfortunately, some people believe that this team is failing to keep down the cost associated with the recovery of funds, which may stem from the loss of 103 bitcoins that were transferred into password-protected wallets. This wouldn’t be such a problem if all of the wallets were not held under the late founder’s name.
Creditors are growing tired of the problems, with one creditor calling this is “gross negligence,” adding that EY should be held responsible. Some individuals have already mentioned the idea of securing separate counsel to protect them and get the funding that they are entitled to. However, the creditors are not confident that Miller Thomson can be replaced at all.
At this point, EY has not requested creditor input on any matter, and law enforcement agencies are not privy to any of the internal investigation. At this point, both the FBI (U.S.) and the Royal Canadian Mounted Police have stated that they are investigating the matter on their own, and there are also authorities involved in Australia.
Creditors appear to even be willing to sacrifice the money they are entitled to if the company or the defunct exchange would just explain how this error happened. At this point, $25 million has been recovered by EY, though $1.6 million of those funds where dedicated to the firms that are involved in the case.