QuadrigaCX’s cold wallets are untouched since April 2018, says E&Y Report

Ernst & Young, one of the big four financial audit giants and court-appointed independent third-party supervisor of the legal and financial controversy-riddled Canadian cryptocurrency exchange QuadrigaCX, released their “Third Report of the Monitor,” which revealed vital information about the exchange’s missing cold wallets.

The audit giant identified six cold wallet addresses, which QuadrigaCX operated in the past to store Bitcoin [BTC] labeled, “Identified Bitcoin Cold Wallets.” Furthermore, E&Y also identified three other wallet addresses labeled “Potential Other Cold Wallets,” which were later invalidated by the auditor as being empty.

In a four-year period, i.e. from April 2014 to April 2018, the BTC balances in the Identified Bitcoin Cold Wallets ranged from the minimal to zero. One exception was when the wallet held 2,776 BTC. The average balance at the end of every month over the aforementioned time period was 124 BTC. The report also said that the Bitcoins in the Identified Bitcoin Cold Wallets were transferred out completely in April 2018.

Since then, no deposits were recorded in the Identified Bitcoin Wallets. An exception, however, was when BTC worth $500,00 was “inadvertently transferred” into the sixth wallet. However, information about the same was previously disclosed by the applicant.

The last transaction from the sixth wallet was recorded on 3 December 2018. E&Y claimed that cryptocurrency exchanges could have been the recipients of some of the Bitcoins in the aforementioned wallets, referring to them as “identifiable cryptocurrency exchanges.”

E&Y report stated,

“To date, the Applicants have been unable to identify a reason why Quadriga may have stopped using the Identified Bitcoin Cold Wallets for deposits in April 2018, however, the Monitor (E&Y) and Management will continue to review the Quadriga database to obtain further information.”

Following the release of this report, E&Y will now look into the exchange’s hot wallet balances to investigate the location of the missing cryptocurrencies.

Since the untimely death of its founder, Gerald Cotten, the exchange’s operations have been in limbo. In early February, the exchange filed for creditor protection, following which E&Y was appointed to oversee operations.

The only information about the location of the wallets came from a five-year-old podcast, in which Cotten stated that the private keys were stored offline in a bank, in the company’s safe deposit box. However, no concrete information about the same has surfaced.

Recently, another cryptocurrency exchange Kraken offered a helping hand to QuadrigaCX, promising a reward of $100,000 in fiat and cryptocurrency to anyone who provided reliable information leading to the retrieval of QuadrigaCX’s cold wallets.

The post QuadrigaCX’s cold wallets are untouched since April 2018, says E&Y Report appeared first on AMBCrypto.