QuadrigaCX Bankruptcy Report Reveals Exchange Owes $150M
The exchange has managed to recover $21M cash on hand, with a total of $28 million in assets, but Ernst&Young failed to discover the reported cold wallet storage.
QuadrigaCX received its final report from the Monitor, Ernst&Young, revealing the exchange only managed to claw back around $21 million in cash on hand while owing upward of $160 million. The amounts of stored digital assets were extremely small, incomparable to the reported hauls allegedly controlled through the laptop of Gerald Cotten before he died.
The now-defunct exchange entered a bankruptcy procedure and was appointed a Trustee to oversee and control both the cash funds and what is left of the digital asset balances. The balances are as follows:
Bitcoin Cash: 33.31773499
Bitcoin Gold: 2,661.91654095
Now, the bankruptcy trustee seeks to recover additional funds from the QuadrigaCX payment processors. QuadrigaCX was also using the services of Crypto Capital, the crypto-to-fiat solutions firm that is currently being investigated and has its funds frozen. Ernst&Young, in its role as a trustee, is contacting all payment processors, seeking access to the funds belonging to the exchange.
“The Monitor identified various TPPP’s who provided fiat processing services to Quadriga.Efforts to retrieve and review accounting records from these organizations and recover, whereapplicable, residual Quadriga cash held on deposit at these TPPP institutions is on-going.”
The Trustee warns that the final amount of funds to be recovered from payment processors is uncertain.
With increased investigation rights, Ernst&Young is also investigating other cryptocurrency exchanges, to verify whether QuadrigaCX held any funds on exchange wallets. The Monitor, in its previous role, also discovered that some of the funds from the exchange may have been used for personal enrichment.
“During the course of the Monitor’s investigation into Quadriga’s business and affairs, the Monitor became aware of occurrences where the corporate and personal boundaries between Quadriga and Mr. Cotten were not formally maintained and it appeared to the Monitor that Quadriga funds may have been used to acquire assets outside the corporate entity,” the report pointed out.
The Trustee has discovered that the exchange owes various types of creditors upward of $216 million valued in fiat, both in cash withdrawals and in personal trader cryptocurrency wallets.