How a dead man collected 103 bitcoins.
In an initial report published Tuesday on Quadriga's progress since it filed for creditor protection in late January, court-appointed monitor Ernst and Young (EY) said that the company accidentally moved more than 100 bitcoins into a cold storage wallet it can not access. If you're not sitting down, I'd find a chair, because against all odds, Gerry Cotten, the exchange's dead owner, just got almost 500,000 Canadian dollars (CAD) richer. His death or disappearance quickly went viral, as he was the sole holder of the private keys and passwords to the company's cold storage wallets.
QuadrigaCX, once the largest and longest-running Canadian crypto exchange, owes customers $250 million in CAD ($190 million USD) in cryptocurrencies and fiat money, in what has become the crypto scandal of the year.
On December 9, 2018, CEO of QuadricaCX Gerald Cotten died in India from Crohn's disease at the age of 30...
EY will take control of the exchange's remaining hot wallet funds by transferring the cryptocurrencies into the professional services firm's own cold wallet, according to Tuesday's report. The holdings included 154 bitcoin, .014 bitcoin cash SV, 33 bitcoin cash, 2,032 bitcoin gold, 822 Litecoin, and 951 Ether.
There has been a weird twist in the ongoing Canadian crypto exchange QuadrigaCX case - with the company "inadvertently" transferring 103 bitcoins (around United States dollars 369,000) from hot wallets into inaccessible cold wallets just hours after a court-appointed monitor had located it.
Let me just give you a second to let that sink in.
All right. Back to the rest of the report. "The Monitor is working with Management to retrieve this cryptocurrency from the various cold wallets, if possible".
According to the report, EY has also taken control of "various Quadriga electronic devices reportedly owned or used by [former CEO Gerald] Cotten within the Quadriga operation", including four laptops, four cell phones and three encrypted USB keys. As of late, the devices are being held in a safety deposit box until EY's forensic team determines how they will attempt to access them. The very next day, Reuters reported that the Ontario Securities Commission would be "looking into" the QuadrigaCX situation, but whether or not it would turn into a full investigation was unclear.