More than $460,000 in QuadrigaCX cryptocurrency disappears into 'cold wallet' - energy storage devices

HALIFAX —The court-
The designated monitor, which oversees the search for the crumbling QuadrigaCX cryptocurrency exchange customer's arrears of $0. 26 billion, said it recently discovered more than $900,000 in digital assets --
See only more than half of the passwords
The coin escaped its control.
On Tuesday, Ernst & Young's first court report revealed the bizarre incident, and Ernst & Young was appointed monitor of the class in February.
When the Supreme Court of Nova Scotia gives protection to creditors of bankrupt companies.
Monitors learned last week that QuadrigaCX holds $902,743 in Bitcoin, Litecoin and other cryptocurrency, the report said.
Popular wallets
But there was a problem in February. 6.
Ernst & Young said QuadrigaCX "inadvertently" transferred 103 bitcoins worth $468,675 to so-
Known as a cold wallet, the company is not accessible now.
"If possible, the monitor is working with management to retrieve this cryptocurrency from various cold wallets," the report said . ".
"The Monitor has arranged for the transfer of the remaining cryptocurrency to a cold wallet held by the Monitor.
"About 115,000 QuadrigaCX customers owe about $70 million in cash and about $0. 19 billion in bitcoin and other cryptocurrency arrears. The Vancouver-
The US-based exchange closed on January.
28, more than a month after its CEO and sole director
Gerald Coton, Nova Scotia resident
When he died while traveling in India, his company was unable to use most of the cryptocurrency.
His widow, Jennifer Robertson, said in court papers that cottten is the only person who can reach his laptop, which is considered to contain a digital key to the cold wallet.
The cold wallet is an offline storage device protected by encryption technology.
Cryptocurrency exchanges typically use them to store most of their digital assets, which makes it impossible for them to access online hackers.
Popular wallet is an online website that stores a small amount of cryptocurrency and can be traded at any time
Similar to the practice of using currency floating in cash registers.
The latest twist in the QuadrigaCX case will certainly fuel rampant online speculation about the company's transactions.
The court document states that rumours of the death of cottten and threats against his widow have always existed, and that she and cottten live outside Halifax.
In addition to the cold wallet chaos, Ernst & Young also reported that there was more than one laptop in the center of the case.
The electronic devices recently retrieved from encryption experts working for QuadrigaCX include: two active laptops;
Two old models of laptops;
Two mobile phones
Two dead phones.
And three encrypted U disks.
In addition, measures have been taken to retrieve cottten's desktop computer from his home office in the Fall River, New York StateS.
"The applicant (QuadrigaCX) and the squad leader will continue to work hard to contact Mr.
Cotten's device, find and access any existing QuadrigaCX cold wallet, find any other cryptocurrency belonging to Quadriga and report to the court on these activities.
"A large part of the actual amount of $70 million owed to creditors is in the form of bank bills of exchange, and the company has failed to deposit in financial institutions, because regular banks are still cautious about handling unregulated cryptocurrency business. Nine third-
Third-party payment processors working with Quadriga are advised that any funds of the company, including bank drafts, must be delivered to the display.
According to Robertson, one of the processors has five bank bills worth $25. 2 million.
However, Ernst and Young confirmed that the company has not yet received any funds from these businesses.
"It may be necessary for the applicant (QuadrigaCX) and monitor to return to the court for additional assistance to ensure that the funds are returned from a third-party payment processor," the report said . ".
"The applicant and the monitoring staff are working with the issuing bank . . . . . . Identify the necessary documents and/or endorsements to facilitate the transfer of the bank draft to the payment account and to negotiate.
Ernst & Young also confirmed that Ernst & Young is working with the company to save storage in a series of third-
Although it is not clear where all of these servers are located.
The findings in the report are based on unaudited financial information, including records of QuadrigaCX and other financial information, as well as interviews with its directors, senior management teams, consultants and legal counsel.
Although the list of creditors has been prepared, it will not be published.
Michael Wood, judge of the Nova Scotia Supreme Court, said in an initial order of February.
The identity of the user will remain secret, he said, because those who trade cryptocurrency generally remain anonymous.
Since the start of the bankruptcy proceedings, more than 500 affected users have contacted Ernst & Young.
Meanwhile, Robertson continues to operate QuadrigaCX, who has already paid $150,000 to cover operating costs.
The document was submitted to the court last month, where Robertson testified that QuadrigaCX cryptocurrency owed $0. 18 billion to users, but Ernst & Young said the figure was actually $0. 19 billion.