Users
of now-defunct Canadian cryptocurrency exchange QuadrigaCX are
requesting further information concerning the recent loss of 103
Bitcoins (BTC) during the funds' recovery.
An unfortunate loss
As Cointelegraph reported
in February, one of the Big Four accounting firms — EY (formerly
branded as Ernst & Young) — was appointed by QuadrigaCX as an
independent third party to monitor the proceedings in a creditor
protection case.
Ey announced at the time that “Quadriga
inadvertently transferred 103 Bitcoins valued at approximately $468,675
to Quadriga cold wallets, which the Company is currently unable to
access.” Currently, the coins would be worth $1 million.
Industry news outlet Coindesk reported
on Aug. 16 that — six months after the accident — the auditor has not
yet given any insightful information concerning how the loss occurred.
According
to the article, all the information disclosed came from the report
released by EY in February, in which the company declares that the loss
was caused by a platform setting error. QuadrigaCX creditor Ali Mousavi
told the outlet:
“This sounds like gross negligence to
us and many of us want to hold EY accountable for what happened. [...]
Instead of giving us the details, they [struck] a deal with [law firm
Miller Thomson] to keep the details confidential and [are] making it
harder for us to hold EY accountable.”
Creditors want a different legal firm
Creditor
Xitong Zou also said that “EY does not seem like they want to explain
what happened when that’s the very least they could do” since “it was
our money, after all.” He also claims:
“A lot of people want [Miller Thomson] replaced. [...] Although I don’t think that’s going to happen.”
EY
has reportedly recovered about $25 million, with a judge awarding $1.6
million in fees and costs to all the firms involved in the case. The
auditor also aims to raise another $9 million by selling assets of the
exchange’s CEO.
As Cointelegraph reported
in a dedicated follow-up piece, the crypto community has recently been
actively discussing the fate of QuadrigaCX’s 30-year-old founder, Gerald
Cotten, who reportedly died in India from a fatal disease in December
2018.
Recently, Cointelegraph also recounted the biggest alleged crypto heists.
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