BTC Wires

What Does Ernst And Young’s Report About QuadrigaCX Say?

A new report has been recently published by one of the Big Four audit firms Ernst & Young (EY) which outlines the assets and debts of major Canadian crypto exchange QuadrigaCX and its subsidiaries. The said report was released on their official website on May 9. Ernst & Young, which was monitoring the creditor proceedings of now-defunct QuadrigaCX has now published a trustee’s preliminary report which reveals that Quadriga has around $20.8 million in assets, and around $160 million in liabilities as of April 12, 2019.

The report also notes that the debts and assets are spread between three subsidiary companies; 0984750 B.C. LTD. (the “Quadriga Estate”), Quadriga Fintech Solutions and Whiteside Capital Corporation.

Quadriga was officially declared bankrupt at the beginning of April, right after their approval by the Nova Scotia Supreme Court Justice Michael Wood, and an EY recommendation that it should be declared bankrupt earlier that month. The bankruptcy would, in turn, facilitate “the potential sale of assets, including but not limited to Quadriga’s operating platform,” as well as streamlining administrative burdens and cutting procedural costs.

As previously reported, Quadriga filed for creditor protection when — following the death of its co-founder Gerald Cotten, it lost access to its cold wallets and corresponding keys, that ostensibly held the assets it owed to its clients. Ernst and Young, in March, had identified six separate crypto wallets that were used primarily to store bitcoin (BTC), the cryptocurrency most used on the platform. Apart from one inadvertent transaction of bitcoin amounting to nearly $500,000, there have been no deposits in the wallets since April 2018.