First QuadrigaCX Monitor Report: $460k in BTC “Inadvertently” Sent to Cold Wallet

First QuadrigaCX Monitor Report: $460k in BTC “Inadvertently” Sent to Cold Wallet
ôîòî ïîêàçàíî ñ : bitcoinmagazine.com

2019-2-13 03:56


According to the latest court documents in the ongoing QuadrigaCX case, the exchange sent roughly $470,000 CAD (approximately $355, 000 USD) worth of bitcoin from a hot wallet to a cold-storage wallet on February 6, 2019.

Ernst & Young’s first report as monitor of scrutinized Canadian bitcoin exchange QuadrigaCX (QCX) complicates the story the exchange has given for its lack of access to company funds following the death of its founder and CEO, Gerald Cotten.

The court document states, “On February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately $468,675 to Quadriga cold wallets which the Company is currently unable to access. The Monitor is working with Management to retrieve this cryptocurrency from the various cold wallets, if possible.”

Regarding the liquidation process for distribution of QCX funds to the exchange’s users, the report says that Ernst & Young has established a “Disbursement Account” per the Nova Scotia court’s orders, “and [it] received $150,000 from Ms. Jennifer Robertson” (Cotten’s widow) to kickstart the account.

The document continues to clarify that the exchange’s remaining hot-wallet funds (some $902,000 CAD, of which $700,000 CAD is in bitcoin, $130,000 CAD in ether and the rest in bitcoin fork coins and litecoin) will be transferred to cold storage under Ernst & Young’s management.

In an affidavit that comprises part of the ongoing legal proceedings in the Court of Nova Scotia, Robertson swore that the exchange had no access to the cold storage because the keys and passwords are stored in one of Cotten’s encrypted wallets.

According to the document, Ernst & Young has also seized Cotten’s computer hardware and accessories, which Robertson originally turned over to retired cybersecurity professional Chris McBryan of McKalian Sensors Inc. to crack.

“The devices taken into custody from Mr. McBryan include two (2) active laptops, two (2) older model laptops, two (2) active cell phones, two (2) older ‘dead’ cell phones and three (3) fully encrypted USB keys. … The Monitor’s forensic group is currently working with Mr. McBryan to better understand actions that have been taken in respect of the devices and what information has been obtained from the devices to date to determine what forensic next steps will be employed. In addition, the Monitor was made aware of and took steps to retrieve Mr. Cotten’s desktop,” the report reads.

Recovering Lost Funds

The document also confirms that Ernst & Young has contacted nine of the known payment processors that served as QuadrigaCX’s makeshift banking partners. The firm has not yet received the $30 million CAD in bank draft notes that both the court affidavit and the report say are under the auspices of Stewart McKelvey, the law firm representing both Robertson and QuadrigaCX. One of these processors allegedly owes the exchange $25.2 million of the $30 million in bank notes QuadrigaCX holds. Once the banks that these processors work with clear wires for these bank notes, the funds will fall under Ernst & Young’s management.

QuadrigaCX had been using these payment processors as a stand-in for proper banking relationships. As sources close to the matter, who asked to remain anonymous, told Bitcoin Magazine, QuadrigaCX has a long history of problems in maintaining banking relationships, a tribulation best represented by CIBC freezing $25 million CAD of funds associated with the exchange in 2018. This freeze was one of many unhappy incidents that have come to define the exchange, including losing millions in ether in 2017 to a smart contract bug and a reputation for month-long withdrawal times.

Speculation and Rumors

Since Gerald Cotten’s death, wild speculation over QuadrigaCX’s solvency, the identity of a since-distanced cofounder Michael Patryn and whether Cotten is actually dead have surfaced in the community. A purported QuadrigaCX contractor, one of the seven that made up the company’s employee structure until recently, posted a reddit AMA on r/QuadrigaCX2 with potentially damning accusations that Cotten and Robertson worked in tandem to scam the exchange’s users. These accusations remain unsubstantiated thus far.

Canadian lawyers will convene on February 14, 2019, in Halifax in a bid to represent some 111,000 users affected by the exchange’s misfortune, Bloomberg reports. In its February 5 ruling, the Court of Nova Scotia granted QuadrigaCX creditor protection, guarding it from further court action until the exchange and Ernst & Young are able to investigate its financial situation.

This article originally appeared on Bitcoin Magazine.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Sentinel (SENT) íà Currencies.ru

$ 0 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.00 %
Cåãîäíÿ L: $0 - H: $0.001936
Êàïèòàëèçàöèÿ $0 Rank 99999
Öåíà â ÷àñ íîâîñòè $ 0.001368 (-100%)

exchange quadrigacx cotten court ernst young bitcoin

exchange quadrigacx → Ðåçóëüòàòîâ: 93


Ôîòî:

QuadrigaCX Founder’s Widow to Compensate Exchange Hack Victims

Jennifer Robertson — the widow of late QuadrigaCX founder, Gerald ‘Gerry’ Cotten, has agreed to hand over assets belonging to the defunct bitcoin exchange in compensation of affected users. Liquidating Assets Belonging to QuadrigaCX Bitcoin Exchange According to CBC News, Robertson is set to hand over QuadrigaCX assets still in her possession to Ernst & Young — Trustees of the bitcoin exchange’s liquidation proceedings.

2019-10-8 13:30


Failed Crypto Exchange QuadrigaCX Should Declare Bankruptcy, Blasts EY Report

Shuttered cryptocurrency exchange QuadrigaCX could be headed toward bankruptcy proceedings to give creditors the best shot at recouping assets. Ernst & Young (EY) in its latest report recommends transitioning Vancouver-based Quadriga Fintech Solutions, the exchange’s parent company, from a restructuring into bankruptcy proceedings.

2019-4-3 15:38


New Crypto Rumors Arise Around Troubled QuadrigaCX Exchange’s $150 Million Missing Funds

We have heard what happened with the cryptocurrency exchange QuadrigaCX and all the implications that it has for the virtual currency market. The owner of the crypto exchange, Gerald Cotten, died a few weeks ago without leaving information about the private keys related to the cold storage wallet in which the exchange held most of […]

2019-2-6 18:43


Lawyers May Sell QuadrigaCX To Amend $150M Bitcoin (BTC), Crypto Debts

Canadian Crypto Exchange In Crisis The QuadrigaCX saga, nay, imbroglio has only continued for the umpteenth consecutive week. After reports arose that the company owed upwards of $150 million worth of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), along with other leading cryptocurrencies and millions in Canadian dollars, local media claims that the Vancouver, British Columbia-based […] The post Lawyers May Sell QuadrigaCX To Amend $150M Bitcoin (BTC), Crypto Debts appeared first on Ethereum World News.

2019-2-5 21:30


Movie script scenario: QuadrigaCX CEO might have faked his own death in India

Canada’s largest crypto exchange QuadrigaCX lost more than $190 million worth of user funds and is unable to reimburse its users. As of Jan. 31, 2019, there were roughly 115,000 users with balances signed up on the exchange, with $70 million CAD in fiat and $180 million CAD in crypto owed overall, according to the […] The post Movie script scenario: QuadrigaCX CEO might have faked his own death in India appeared first on CaptainAltcoin.

2019-2-3 16:18


Avoiding QuadrigaCX’s $190 Million Disaster: How Do the World’s Largest Crypto Exchanges Store Funds?

Canada’s largest crypto exchange QuadrigaCX lost more than $190 million worth of user funds and is unable to reimburse its users. As CCN reported on February 1, the founder and CEO of QuadrigaCX passed away in India with sole control over the company’s cold wallets containing more than $150 million in cryptocurrencies like Bitcoin and Ethereum, and $40 million in cash stored with a third party.

2019-2-3 11:48


How much Crypto is lost due to people Passing Away?

With the recent news of the QuadrigaCX exchange owner passing away and losing over 26,488 Bitcoin, 1,000,000,000 XRP, 200,000 Litecoin, and 429,000 Ethereum should these numbers be taken off the total supplies once confirmed gone forever? The news had me thinking how many other accounts are lost for either due to people passing away without […] The post How much Crypto is lost due to people Passing Away? appeared first on ZyCrypto.

2019-2-2 23:20


QuadrigaCX Exchange Shuts Down Due to Liquidity Issues, Posts Notice on Official Home Page

QuadrigaCX Follows “Temporary Shutdown” By Applying for Creditor Protection in Nova Scotia It has been no secret that QuadrigaCX has been struggling to stay afloat for some time. Earlier last year, the company had frozen the funds of consumers, leaving them unable to make withdrawals. While the company was in a legal dispute over the […]

2019-2-1 05:17


Maintenance Issues Force QuadrigaCX to Temporarily Shut Down, Could Legal Troubles to Blame

QuadrigaCX, a cryptocurrency exchange, has been in hot water for months with their own customers, considering that no one has been able to withdraw their crypto assets for months now. There has been plenty of rumors surrounding the cause, but the company did not exactly put themselves in a good position today when they notified […]

2019-1-29 17:26