E&Y has lost $1 million of the Quadriga bankrupt exchange customers

18/08/19 02:00 UTC-7

E&Y lost $1 million in cryptocurrency

The Ernst & Young audit company (E&Y) lost 103 BTC clients of the failed Quadriga crypto-exchange. At current prices, this is more than $1 million. Now users are thinking about how to return this money.

Quadriga bankruptcy and Ernst & Young mistake

Canadian Quadriga crypto-exchange went bankrupt in the winter of 2019 after the death of CEO Gerald Cotten.

According to the management, Cotten is the only one who had access to the cold wallets of the site, where more than $190 million of cryptocurrency customer money was stored. Allegedly, the general director did not pass anyone the passwords from the store, and therefore the money was “lost” irretrievably.

Interesting in the section: Electrum Wallet: Bitcoin-Wallet description

Following the bankruptcy, the High Court of Nova Scotia appointed the Ernst & Young audit firm an independent investigator. The auditor would have to check the financial condition of the exchange and find the money of customers.

But at the end of February 2019, E&Y sent another 103 BTC to cold storage of the crypto-exchange, which cannot be accessed, CoinDesk reports. At that time, the “lost” cryptocurrency cost about $375000. And at current prices, its value reached $1.03 million.

E&Y claims that the embarrassment was due to an “error in the platform settings”. This did not reassure clients, and according to CoinDesk, some of them are going to seek the resignation of auditors and others involved in this incident.

Ernst & Young “lowered” $1 million cryptocurrency of Quadriga customers. Despite the mistake, E&Y was able to find part of the customers’ money. In total, the auditor found $25 million. The company plans to receive another $9 million from the sale of real estate and other assets of Gerald Cotten. The proceeds will go towards paying affected Quadriga customers and business partners.

Editor: Godfrid Brower

See also: “Coinbase cryptocurrency exchange has swallowed institutional customers of Xapo”

#Quadriga #Scam #Ernst&Young #Cryptoexchanges #ExitSkam

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