fbpx
Cryptocurrency Exchange

QuadrigaCX Users Request Information on Recent Loss of 103 Bitcoins

Clients of, currently not functioning Canadian cryptocurrency exchange QuadrigaCX are seeking additional information about the current loss of 103 Bitcoins (BTC) through the fund’s recovery.

One of the Biggest Four accounting firms EY (Ernst and Young) was chosen by QuadrigaCX as an independent third party in a creditor protection case to monitor the proceedings.

At that time EY reported that –

Quadriga inadvertently transferred 103 Bitcoins valued at approximately $468,675 to Quadriga cold wallets, which the Company is currently unable to access.

The coins worth would be 1 million dollars currently.

Recently, EY has redeemed about 25 million dollars (33 million dollars in CAD), with a judge granting 1.6 million dollars in charges to the organizations engaged with the case. EY is hoping to raise to another 9 million dollars (12 million dollars in CAD) by selling resources from Cotten’s estate (which includes luxury vehicles, a personal aircraft, a boat, and 16 Nova Scotia properties) that EY declares that it was purchased with client funds.

QuadrigaCX, once functioning Canada’s biggest crypto exchange, crumbled virtually overnight prior this year after CEO Gerald Cotton expired when he was in India. Furthermore, Cotten’s widow filed an affidavit said the exchange owed clients as much as 190 million dollars (250 million dollars in CAD).

The Nova Scotia Supreme Court which is regulating the organization’s winding up appointed four auditors from EY to screen and recover assets for the exchange clients, and the counsel to represent these customers are the law offices Miller Thomson and Cox and Palmer.

Nevertheless, a portion of these creditors considers that Miller Thomson and EY are neglecting to minimize expenses or recover client funds. The reason for this dissatisfaction comes from the 103 bitcoins that were accidentally moved into wallets whose passwords were known uniquely to the late founder. Until the passwords are retrieved, there is no real way to recover the bitcoin.

A part of 1.6 million dollars in fees are used in the restructuring procedure Quadriga entered in January. However, the exchange is currently winding up as a significant aspect of a bankruptcy procedure. This implies EY, Miller Thomson and other firms will have extra charges at some future date.

Six months have passed, EY has not given much in the way of clarifying in detail how the bitcoin was transferred and what is adequately locked in wallets. A report was published in late February; the firm stated that transferred happened due to setting error on the platform.

Tags
Show More

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

Related Articles

Back to top button