The sad set of events for the cryptocurrency exchange firm QuadrigaCX sees a new turning point. The exchange has gone mostly empty after the exchange lost a huge amount of funds in its cold wallets.
The exchange has now transferred the funds to its ‘Big Four’ auditor EY. The consultancy firm EY is now having all the QuadrigaCX’s crypto assets under control. This has taken place as the Canadian authorities ordered the crypto exchange firm to transfer the assets to EY. After the death incident of the CEO of QuadrigaCX, the exchange lost its investor’s fund into the cold wallets as the private keys of the wallets were only known by the CEO.
Looking at the circumstances, the Supreme Court of Nova Scotia appointed EY as the monitor of the crypto exchange firm. The court order stated that the exchange needs to hand over 51.1 bitcoin, 33.3 bitcoin cash, 2,032.7 bitcoin gold, 822.3 Litecoin and 951.5 ether. Regarding the transfer of funds, the monitoring firm EY notes,
“On February 14, 2019, after testing the transfer arrangements, the Applicants successfully transferred the following cryptocurrency to the Monitor.”
The report from the court further stated that until the court decides anything further regarding the case, EY will be holding these crypto assets given by QuadrigaCX. The court noted, “[EY] will hold the cryptocurrency in cold storage, – pending further order of the Court.”
Additionally, for security purpose, these crypto assets will remain offline to protect them from theft or hack. By now, auditing firm Ernst & Young is responsible for the security of the crypto assets. The exchange has given a significant amount to EY, yet the exchange still holds 104 Bitcoins under custody. Notably, EY’s report gives details about the exchange’s fiat holdings. The auditing firm elaborates how it is going to secure the exchange’s fiat funds. It indicates three main sources: one is a payment processor custodian, having 25 million CAD in bank drafts, the second one is the law firm Stewart McKelvey, which held $4.39 million in bank drafts, plus the rest of the amount in some other third-party processors. Here, the way the QuadrigaCX case has gone through a lot of mess, it seems that it won’t end soon.