How a dead man collected 103 bitcoins.
Per the report, Ernst & Young successfully located over Dollars 680,000 worth of Bitcoin, Litecoin and Ethereum in hot wallets on February 5, but "something went wrong" the very next day - with QuadrigaCX "inadvertently" moving 103 BTC into cold wallets that the monitor can not access. If you're not sitting down, I'd find a chair, because against all odds, Gerry Cotten, the exchange's dead owner, just got almost 500,000 Canadian dollars (CAD) richer.
Canadian crypto exchange QuadrigaCX, which owes customers $250 million in CAD ($190 million U.S.) in cryptocurrencies and fiat, lost another $500,000 CAD by mistake last week.
However, on February 6, - the day after the exchange was given 30 days to find a way into their cold wallets - 103 of the 154 bitcoins stored in hot wallets were "inadvertently transferred ... to Quadriga cold wallets which the Company is now unable to access".
If you know anything about the QuadrigaCX saga, then you know that the exchange can not now access an excess of $180 million in cryptocurrency (it says) it holds in cold storage on Cotten's encrypted laptop.
On December 9, 2018, CEO of QuadricaCX Gerald Cotten died in India from Crohn's disease at the age of 30...
According to EY's report, the monitor was told by QuadrigaCX that the exchange held the equivalent of CAD$902,743 worth of various cryptocurrencies in its hot wallets.
This includes 51 bitcoin, 0.014 bitcoin cash SV, 33 bitcoin cash, 2,000 bitcoin gold, 800 litecoin and 950 ether.
The report continues, "The monitor is working with [QuadrigaCX] management to retrieve this cryptocurrency from the various cold wallets, if possible".
According to the report, EY has also taken control of "various Quadriga electronic devices reportedly owned or used by [former CEO Gerald] Cotten within the Quadriga operation", including four laptops, four cell phones and three encrypted USB keys. Let us know what you think in the comment section below.
These devices are being kept in a safety deposit box EY rented while its forensic group determines the best next steps to try to access them.
At the end of last week, Reuters reported that the British Columbia Securities Commission, the province's securities regulator, would not be investigating the QuadrigaCX situation as the authority did not believe the exchange was trading in securities.