Home News Bitcoin QuadrigaCX Inadvertently Transferred Bitcoins Worth $400K to Dead CEO’s Wallet

QuadrigaCX Inadvertently Transferred Bitcoins Worth $400K to Dead CEO’s Wallet

February 13, 2019 17:05
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Source: KryptoMoney
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It seems like sufferings of QuadrigaCX users are not going to be over soon. In a recent report submitted by Ernst and Young (EY) to Supreme Court of Nova Scotia, it said that the exchange “inadvertently” moved $370,800 in Bitcoin in the cold storage wallet of dead CEO Gerald Cotten earlier this month. 

The report by EY reads:

On February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately CAD $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.”

For users, this news is like adding insult to the injury. In QuadrigaCX’s case, the cryptocurrencies held in the company’s cold wallet or offline wallet cannot be restored at any cost, as the passwords were only with the CEO, who passed away in December 2018.

As of now, the exchange has only access to the company’s hot wallet which has only $1 million in various crypto balances, which is not enough to pay back users, to whom the company owes $150 million.

“The Monitor was advised that Quadriga held the following cryptocurrency balances (with approximate Canadian currency equivalent aggregating to $902,743) within its hot wallets on its servers as at the Filing Date,” EY said.

EY in its report also said that it is in process of finding any cold storage wallet that exists, but till now they have not come across any such.

“The Applicants and the Monitor will continue with their efforts to access Mr Cotten’s devices, find and access any Quadriga cold wallets that exist, and locate any other cryptocurrency belonging to Quadriga and report back to the Court in respect of these activities.”

The exchange currently has the following balance of digital coins in its hot wallet, according to the report submitted by EY.

The full report can be read here.

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