QuadrigaCX accidentally transferred $ 500,000 in BTC to cold portfolios that it does not have access to

According to a report published by Ernst & Young on February 12, QuadrigaCX, Canada's leading provider of QuadrigaCX cryptography services, reportedly accidentally transferred nearly US $ 500,000 in bitcoins (BTC) to its cold portfolios.

The founder of QuadrigaCX, Gerald Cotten, aged 30, died in December 2018. The exchange could not access his cold portfolios because Cotten was the sole manager of the portfolios and portfolios. corresponding keys.

The vast majority of Quadriga's badets would have been lost in the cold portfolios that were missing. In early February, it was reported to Quadriga that it was missing 190 million US dollars ($ 145 million) of digital badets.

The exchange had previously named Big Four Audit Firm, Ernst & Young, as an independent third party to follow the proceedings in a creditor protection case. The recently released report, titled "Comptroller's First Report", is intended to provide the court with an update of the procedures, indicating:

"On February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately $ 468,675 to cold Quadriga portfolios to which the company currently does not have access. The monitor works with management to recover this cryptocurrency from the various cold portfolios, if possible. "

During the audit, Ernst & Young secured a number of Quadriga electronic devices – owned by or used by Cotten – consisting of four laptops, four mobile phones and three USB sticks entirely. encrypted. According to the document, the devices are currently in a safe rented by Ernst & Young.

Cointelegraph recently reported that the Ontario Securities Commission (the "OSC") "was reviewing Quadriga. OSC spokeswoman Kristen Rose said, "Given the potential risks to Ontario investors, we are looking into this issue and have already contacted the Comptroller." Rose reportedly refused to say whether this meant the Commission was investigating officially on the exchange.

The OSC's comments followed the BC Securities Commission's badertion that it does not regulate QuadrigaCX, as the company apparently did not have any evidence of trading in securities or derivatives, or functioning as a stock exchange.