QuadrigaCX

History

2019: Ernst & Young accidentally lost 100 bitcoins

By August, 2019 the former users of the failed QuadrigaCX cryptoexchange began to lose patience - in spite of the fact that the court appointed Ernst & Young auditing company to return the gone means, that accidentally lost 103 more bitcoins. Now victims require to explain how it occurred and also consider an opportunity to find the new legal representative.

Creditors of the QuadrigaCX exchange require to disclose detailed information on loss by 103 BTC auditor

QuadrigaCX, is once the largest Canadian cryptoexchange, failed suddenly at the beginning of 2019 after the death of the CEO Gerald Cotten. In the application submitted by Cotten widow it is specified that the exchange ran into debt to clients up to $190 million. The Supreme Court of Nova Scotia which exercises supervision of liquidation of the company charged to Ernst & Young auditing firm to try to return means to clients of the exchange. The Miller Thomson law firm had to represent the interests of these clients.

Nevertheless, some of creditors consider that Miller Thomson and Ernst & Young is not able to return means of users. Partly the reason of disappointment was the fact that Ernst & Young was transferred accidentally by 103 bitcoins to purses from which passwords were known only to the late founder of the company. If these passwords are not recovered, it will be impossible to return bitcoins. The error happened in February, 2019, and the amount at that time lost was about $375 thousand. By August, 2019 their cost reached $1.03 million.

Though there passed half a year, Ernst & Young still did not provide detailed explanations for how money was transferred to the blocked purses. In the report published at the end of February, 2019, the firm stated that transfer happened because of "a platform setup error". The disappointed users consider that the Miller Thomson law company covers the gross errors made by Ernst & Young and intend to take legal action even if for this purpose it is necessary to involve the new third-party lawyer.^[1]

Notes