Big Four accountancy firm Ernst & Young (EY) has released a new audit report that spells out the exact assets as well as debts of the now defunct Canadian crypto exchange QuadrigaCX and its subsidiaries.
The audit company was monitoring the creditor proceedings of QuadrigaCX, and this preliminary trustee publication reveals only USD 20.8 million in assets in comparison to about USD 160 million in liabilities as of 12 April 2019. In the same week before that date, Quadriga filed for bankruptcy and was approved by the Nova Scotia Supreme Court Justice Michael Wood. As expected, the bankruptcy paved the way for a “potential sale of assets, including but not limited to Quadriga’s operating platform.”
Specifically, debt and assets are spread between three subsidiary companies; 0984750 B.C. LTD. (the “Quadriga Estate”), Quadriga Fintech Solutions and Whiteside Capital Corporation.
The saga began last year when its co-founder Gerald Cotten, passed away in India. The exchange then claimed that he was the sole owner of all the private keys to its cold wallets, containing all the digital assets of their clients.
However, in March, EY identified at least six wallets primarily used to store Bitcoin. Apart from one inadvertent transaction of half a million US dollars, not one of then received any deposits since April 2018.
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