You’d think Quadriga cryptocurrency exchange will save people the trouble and just be straightforward, but no, they’ve left it to Ernst & Young (EY), an audit firm to unravel the mystery. Nonetheless, the truth has a way of uncovering itself. The latest in a series of events is that the “supposed” cold store wallets which hold C$190 million worth of cryptocurrencies have been empty since April 2018, according to a report released by EY on March 1.
Recent Happenings of Quadriga Cryptocurrency Exchange
Ridiculous, exciting, and hilarious, that’s what many have described the recent happenings on Quadriga, a Canadian cryptocurrency exchange. Ernst & Young, the monitor that was mandated by the court to investigate matters relating to the exchange’s funds, has made another report. The monitor revealed that six cold store wallets owned by QuadrigaCX have been empty since April 2018.
According to Ernst & Young, the last time five of such storages received cryptocurrencies was between April 2014 to April 2018. A study of the public blockchain records revealed that during that time, the highest funds held within them (all six wallets) amounted to 2,776 Bitcoin. However, these funds were sent to different cryptocurrency exchanges, and as such, they are empty.
The Monitor Identifies Sixth Cold Store Wallet
The sixth cold store wallet, on the other hand, recorded some level of activity because it holds the recent transaction that was made by Quadriga from a hot wallet. However, the transfer was already disclosed that after the death of the exchange’s CEO, Gerald Cotten funds were moved from a hot wallet into it.
BTCNN on February 9, informed that the between Dec. 2 and Dec. 8, almost $1 million worth of Ethereum was transferred from the QuadrigaCX to other exchanges. On December 3, Bitcoin was also sent from a cryptocurrency exchange into the sixth cold store before it was sent to a hot wallet. Likewise, a report from February 13 revealed that one of the exchange’s hot wallet had sent C$468,675 to the cold store.
Potential Cold Store Wallets Discovered
Asides from the six cold store wallets, three potential ones which the exchange had used in the past were discovered. Like the rest, they do not have funds that can compensate 115,000 customers that have been affected. In the same manner, 14 user accounts that were either opened by the Late CEO or the exchange itself were discovered, and these are accounts which deposits had been made to. 14 exchanges where these accounts are held have been contacted and only four have responded.
More light into the event reveals that Jennifer Robertson, Cotten’s widow had been denied access to the cloud platform, Amazon Web Services where Quadriga’s data is stored. The latter was attributed to the fact that the exchange is registered under Gerald Cotten’s name and not hers. Nevertheless, Ernst & Young’s request to access the cloud has been granted, and possibly more discoveries will be made.