Ernst & Young has published its “Third Report of the Monitor” covering new findings on the creditor protection proceeding of the now-defunct QuadrigaCX crypto exchange platform.
6 Cold Wallets for BTC
The report dated March 1 has revealed six crypto wallets supposedly used to store the exchange’s Bitcoin (BTC) – Bitcoin having been the most prominent crypto the platform dealt with. The Big Four audit firm identified a single inadvertent transaction of BTC totaling to about half a million dollars.
Aside from the single transaction, there has not been any other subsequent transaction since April 2018. The report, however, does not explain why the exchange may have shied from using the bitcoin cold wallets since April last year besides being operational until the unfortunate demise of its CEO Gerald Cotton.
After the death of QuadrigaCX’s founder, the exchange filed relief under the Companies’ Creditors Arrangement Act, seeking court’s protection from its creditors. The exchange argues that it lost access to its crypto storages that held tokens for several of its users.
Nonetheless, some quarters believe that about $100 million believed to be held in the inaccessible accounts might be lost. Still, in what might turn out to be the only hope for users who have their cryptos stored by the exchange, the missing tokens might be stored in other operational cryptocurrency exchanges.
The recent report has also identified other 14 accounts created under aliases. According to the report, the said accounts may have been created against the platform’s normal process.
As reported in the publication, “the Identified Accounts were internally created without a corresponding customer and used to trade on the Quadriga platform. [EY] was further advised that deposits into certain of the Identified Accounts may have been artificially created and subsequently used for trading on the Quadriga platform.”
The Monitor needs additional data and information to give a comprehensive report on the matter. In spite of this, Amazon Web Service could not give access to secure transactions and account details stored in its cloud.
In related news, Kraken denied allegations that the missing funds have been stored in the exchange. The platform further offered a $100,000 reward for information that may lead to the discovery of the missing money.