Crypto News Bulletin from bitcoinmagazine

Tuesday March 5, 2019 5:20 PM
2 weeks 12 hours ago

As Court Reconvenes for QuadrigaCX, Questions Surround Empty Cold Wallets


As QuadrigaCX’s legal counsel descends on the courtroom in Halifax, Nova Scotia, for another round of legal proceedings, the court monitor’s third report on QuadrigaCX’s finances — specifically its revelation that the exchange’s cold wallets are empty — lays out some hopeful avenues for fund recovery — and some frustrating dead ends.QuandrigaCX has been entrenched in a solvency scandal ever since its founder’s untimely death in December of 2018. Gerald Cotten passed away while honeymooning with his wife, Jennifer Robertson. According to his widow and his company, he died with the sole knowledge of the exchange’s cold storage private keys and seed phrases. The exchange filed for creditor protection on February 5, 2019.Ernst & Young (EY) was appointed as monitor over the case, and it’s now saying that the long sought-after funds in QuadrigaCX’s elusive cold wallets aren’t there. The wallets are empty and have been for almost a year, the accounting firm writes in its third report for the Nova Scotia court. It also reports that it has secured some $25 million CAD in customer funds from QuadrigaCX’s payment processing partners. It also revealed that QuadrigaCX had 14 accounts open on various exchanges, that these exchanges hold some of the previously inaccessible funds and that most, if not all, of these accounts were opened under alias identities.And if that weren’t enough to chew on going into today’s hearing, Kraken CEO Je...

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