The QuadrigaCX imbroglio took a turn yesterday when Big Four Auditing Firm, Ernst & Young (EY) released its \u201cThird Report of the Monitor\u201d that asserts that they have identified six separate crypto wallets were used to store the exchange\u2019s cryptocurrency.<\/p>\n
Unfortunately for embattled QuadrigaCX<\/a> investors, the wallets did not contain any of the nearly $150 million in cryptocurrency that is still missing following the death of the exchange\u2019s CEO, and the hunt for this missing crypto will continue on.<\/p>\n Aside from one inadvertent transfer into one of the wallets totaling at under $500,000, the report<\/a>\u00a0claims that there have been no deposits into the wallets since April of last year.<\/p>\n \u201cTo 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 and Management will continue to review the Quadriga database to obtain further information,\u201d the report explained.<\/p><\/blockquote>\n Importantly, besides a small fraction of cryptocurrency remaining in the addresses, there is still well over $100 million worth of customer\u2019s crypto still missing.<\/p>\n Furthermore, EY noted that they have thus far been unable to discover why the six wallet addresses had stopped being used by the exchange, but that they would continue to review their data sources in order to garner more info on where the funds were being directed to.<\/p>\n \u201cThe Monitor has made inquiries of the Applicants as to the reason for the lack of cryptocurrency reserves in the Identified Bitcoin Cold Wallets since April 2018. 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 and Management will continue to review the Quadriga database to obtain further information.\u201d<\/p><\/blockquote>\n Ernst & Young did not discuss whether or not they know about any existing wallet addresses outside of the six aforementioned ones, and also did not discuss whether or not there are any cold storage addresses holding cryptocurrency besides Bitcoin.<\/p>\n Recently, a research report published on the Zerononcense Blog<\/a>\u00a0claimed that they have identified the wallet addresses where the exchange was keeping their Ethereum, and that there is a \u201cstrong possibility\u201d that there may be a significant amount of ETH being held on some major cryptocurrency exchanges, including Poloniex, Kraken, and Bitfinex.<\/p>\n According to the report, there may be over 600,000 ETH being held in wallets on these exchanges, and that the now defunct exchange\u2019s deceased CEO \u2013 Gerry Cotton \u2013 may have been moving the ETH to these exchanges while QuadrigaCX<\/a> was operational.<\/p>\n \u201cBased on the transaction analysis included in the report, it appears that a significant amount of Ethereum (600,000+ ETH) was transferred to these exchanges as a means of \u2018storage\u2019 during the years that QuadrigaCX was in operation and offering Ethereum on their exchange\u2026 it is very possible that QuadrigaCX, the creditors, and other entities are unaware of this discovery,\u201d the Zerononcense Blog report explains.<\/p><\/blockquote>\n Jesse Powell, the co-founder and CEO of Kraken, responded to the report on Twitter, explaining that none of the aforementioned funds are being stored on Kraken, and further adding that the possibility of these funds being held on exchanges is the \u201cbest hope that QCX clients have” of ever retrieving their lost funds.<\/p>\n \u201cThis is the best hope that QCX clients have — that Cotten was keeping client funds in other exchanges. Unfortunately, nothing at Kraken. Hopefully, others are looking. Could be accounts were created under different names so might take some real digging to find.\u201d<\/p><\/blockquote>\n This is the best hope that QCX clients have — that Cotten was keeping client funds in other exchanges. Unfortunately, nothing at Kraken. Hopefully, others are looking. Could be accounts were created under different names so might take some real digging to find.<\/p>\n — Jesse Powell (@jespow) March 1, 2019<\/a><\/p><\/blockquote>\nErnst & Young: There Have Been No Deposits into QuadrigaCX Crypto Cold Wallets Since April 2018<\/strong>\u00a0<\/strong><\/h2>\n
Could the Missing QuadrigaCX Funds Be Held on Various Crypto Exchanges?<\/strong><\/h2>\n
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