A preliminary report filed by Ernst and Young, acting as a court-appointed monitor for crypto exchange QuadrigaCX, revealed that the exchange sent 103 bitcoins to the cold storage wallet it claimed to have been locked out of. The coins were sent to the cold storage wallet after the crypto exchange had contended that only the late founder could access it.
QuadrigaCX messes up again?
Earlier this month, Canadian crypto exchange QuadrigaCX claimed that it could not repay the 190 million USD to clients as the dead founder is the only one who knew the password to their cold storage.
The news became public knowledge after the widow, Jennifer Robertson, stated in an affidavit that the exchange owes its customers roughly 190 million USD in both crypto and fiat money and cannot pay it back.
The report by Ernst and Young has revealed some interesting details about the case after QuadrigaCX was said to have sent 103 bitcoins to the lost storage wallet. According to the report, “On February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately 468,675 USD to Quadriga cold wallets which the company is currently unable to access. The monitor (Ernst and Young) is working with the management to retrieve this cryptocurrency from the various cold wallets, if possible.”
This latest development is a big negative for a company that is already facing criticism from the crypto community. The report mentioned that 427 affected users have already obtained legal counsel to act against QuadrigaCX and protect their funds. However, the Canadian Supreme Court issued an order granting the exchange creditor protection for an initial period of 30 days.
At the moment, it is still unsure how much QuadrigaCX has access to. Ernst and Young pointed out that they will be transferring the remaining crypto into a cold wallet that they control. This will ensure that QuadrigaCX doesn’t make a mistake and lose the remaining funds it has access to.