QuadrigaCX granted 45-day extension to trace missing funds

Cryptocurrency exchange QuadrigaCX has been granted a 45-day extension to trace the $190 million worth of missing customer funds

Canadian cryptocurrency exchange QuadrigaCX has received a 45-day extension to trace customers’ missing funds following the death of CEO Gerald Cotten.

Mr Cotten was reportedly the only person at QuadrigaCX who had the private keys to access the exchange’s funds. It is believed that around $190 million worth of funds had been lost as a result of the incident.

Recently, Coin Rivet reported that more than 600,000 Ethereum had been found on three other exchanges.

A report from Ernst & Young – the monitor for the QuadrigaCX case – has also revealed that since April 2018, five out of six cold wallets belonging to QuadrigaCX were found to be ‘empty‘.

45-day extension

QuadrigaCX has now received a reprieve as it neared its creditor protection deadline.

The exchange has been granted a 45-day extension to trace the missing funds by Nova Scotia Supreme Court Justice Michael Wood, reports the Canadian Press on 660 City News.

Mr Wood has also approved the appointment of a chief restructuring officer, but has stated any work must first be approved in advance by the court-appointed monitor (Ernst & Young). This is to provide assurances that professional fees will not be “out of control”.

He has also granted Ernst & Young access to trading platform data which is stored in the cloud through Amazon Web Services (AWS).

Reportedly, court documents stipulate that $190 million is missing in crypto from QuadrigaCX’s cold wallets.

An additional $70 million in cash is reportedly owed to QuadrigaCX users as well. It is believed that much of this $70 million is tied up in bank drafts held by third-party payment processors.

Interested in reading more about the QuadrigaCX saga? Discover more right here on Coin Rivet.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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