Of the biggest stories within the crypto industry of 2019 has been the QuadrigaCX story in which hundreds of millions of dollars in customer funds were lost by the exchange after their CEO died unexpectedly being the only one having access to their cold wallet. The case saw mainstream attention and brought up the topics of security of cold wallets, the security of crypto exchanges and also sparked many fake death rumors even as the company went into bankruptcy.
Now, according to an August 16, 2019 report, users of the now-defunct exchange have requested more information considering the recent loss of 103 bitcoins during funds recovery which brings yet another twist into the complex story.
EY and QuadrigaCX
It was first reported in February 2019 that EY, one of the big four accounting firms, had been appointed by QuadrigaCX to monitor their proceedings in a creditor protection case as their third-party. At the time, the company was facing threats from customers whose money has been lost as well as an investigation into any misdeeds.
At the time, EY announced that QuadrigaCX had inadvertently transferred 103 bitcoins valued at $468,675 to their cold wallet which the company was unable to access. The tokens are now worth about a million dollars and the announcement of this caused even more frustration among users as they could not understand how the exchange could lose even more money on top of the hundreds of millions they were yet to recover.
Now, six months after the fact, the auditor has not given any information as to how the loss of the funds occurred and tensions have continued to rise. The only information disclosed so far came from the February 2019 report in which the company declared that the loss was caused by platform setting error.
“This sounds like gross negligence to us and many of us want to hold EY accountable for what happened. […] Instead of giving us the details, they [struck] a deal with [law firm Miller Thomson] to keep the details confidential and [are] making it harder for us to hold EY accountable,” QuadrigaCX creditor Ali Mousavi said.
Another creditor has suggested that EY is not doing a proper job and does not want to explain what happened with the money and that while many people want a replacement of firms, he did not think it is going to happen. So far, EY has reportedly recovered $25 million of the money and a judge is awaiting $1.6 million in fees and costs to all the films that are involved in the case with the auditor also wanting to raise $9 million by selling the assets of the exchange’s late CEO.