Questionable QuadrigaCX Exchange Sends All Bitcoin And Ethereum Funds To Ernst & Young Auditor
QuadrigaCX Has Sent All Its Bitcoin And Ethereum To EY, A Big Four Auditor
It looks like the situation at the QuadrigaCX crypto exchange is finally developing a bit. Recently, the online “hot” wallets of the company that stored Bitcoin (BTC) and Ether (ETH) have been fully emptied and, as the court commanded, they were sent to Ernst & Young (EY), one of the biggest four audit companies in the country.
According to the reports, there was a total sum of 52 BTC and 960 ETH in the accounts that belonged to the Canadian exchange. These accounts were accessible because, unlike the ones that were in cold storage, these ones were connected to the internet, so they were easier to access.
EY, which was appointed by the local court, will now take control of the funds and transfer them to its own cold storage wallet. A total of 51 Bitcoin, 951 Ether, 33 Bitcoin Cash (BCH), 2,000 Bitcoin Gold (BTG) and 822 Litecoin (LTC) were transferred. The crypto will now be held and will await further orders from the court.
Before transferring the value, EY was cautious. The company decided to make a test transaction first in order to protect the funds. First, the company made the small transactions and as soon as they received it, they sent the rest.
This was made mostly because 104 BTC was sent on February 6 to a wallet that only the late CEO of QuadrigaCX knew the private keys and this made the situation even worse for the people involved.
EY has also reported that it is trying to secure the fiat holdings of the company as well as the crypto assets. According to the company, there are three main sources from fiat cash that EY is trying to contact to get the funds.
One is Costodian, a payment processor which has $25 million CAD of QuadrigaCX, set of bank drafts in possession of Steward McKelvey totaling $5.8 million CAD and various smaller amounts held by other companies.
Costodian has already given most of the money to EY. $20 million CAD, around 80% of the total sum, has already been transferred. However, the payment processor wants $778,000 CAD that Quadriga allegedly owes it as well.
The court will only get to the next phase of the process as soon as the money is all transferred to EY. Until then, the people who applied to be paid for the funds they held will not receive anything.
QuadrigaCX is becoming a cautionary tale for investors. The CEO of the Canadian exchange, Gerald Cotten, died back in December 2018 while traveling abroad. The main problem was that the CEO was the only person holding the private keys to the funds, so the customers were cut off from the money.
As soon as the court took the case, the money started to be gathered to pay back the customers and service providers of the exchange. The widow Jennifer Robertson is representing the company at the moment and has managed to start the process to pay back the investors.