EY Releases Latest Report About QuadrigaCX

| Publish date: 05/11/2019
Share

It seems the storm involving QuadrigaCX is far from over in the crypto space. According to the latest report, the Canadian crypto exchange, which plummeted following the demise of its CEO and founder in 2018, is believed to only have $21 million in assets. However, it is also said to owe creditors at least $160 million.

EY Releases Report

In a report courtesy of Ernst and Young (EY), there are three legal entities claimed to be affiliated with the company. These are none other than Whiteside Capital Corporation, Quadriga Fintech Solutions Corp., and 0984750 B.C. Ltd. Apparently, each of these firms is presented as the exchange’s very own bankrupt company.

As such, each of the aforementioned firms reportedly has its own information when it comes to assets and liabilities despite overlapping. The report further claims the existence of a so-called “material discrepancy,” which is said to exist between the reported fiat and digital currency obligations. The existence, in particular, is simply because there were a variety of creditors, estates, and known assets.

George Kinsman, who is the EY employee acting as both the monitor and trustee, shoddy bookkeeping has become a main issue they encountered after pulling all numbers together.

Finding the Missing Funds

It is worth noting that the Canadian crypto exchange entered a civil rehabilitation process back in January. This was during the time when the widow of the late founder Gerald Cotton named Jennifer Robertson created an affidavit suggesting that the company was unsuccessful in accessing its cold – also known as offline – digital currency wallets. This happened, as mentioned above, following the death of Cotton.

EY, on the other hand, experienced the same thing when developing its report. It was unsuccessful in finding out where the cryptos in the cold wallet addresses are. Apart from these addresses, Quadriga also managed to accidentally transfer around 103 BTC from a hot wallet.

Changelly - Exchange cryptocurrency at the best rate

Kinsman, in an attempt to address EY’s goal of locating the missing funds, said that “a complete and fulsome review” of the exchange’s financial affairs require a good amount of time. The same thing can be said for exerting effort, which will be essential in finding these missing funds. She added that while the report may look substantial, it is somehow questionable in a sense that there is a lack of available information. Moreover, she believes that other information (i.e. the number of third-party processors, the volume of transactions, crypto exchanges involved, etc.) has not been fully monitored with EY’s investigation.

Share

Related Posts

Unparalleled Crypto Supremacy: TMS Network (TMSN) Pummels...
When you think about huge crypto gains, you probably…
Leading NFT Platform Enjin Joins The United...
Enjin is the first NFT platform to become a…
EU MiCA Regulation Applauded, but Markets Look...
Markets in Crypto-Assets (MiCA) is a new regulation in…

Leave a Comment