QuadrigaCX: Bitcoin Moves Elsewhere as Ernst & Young Tries to Recover Funds

Bullet Points:
• QuadrigaCX, a Canadian crypto exchange, collapsed in 2019 after its founder passed away.
• Ernst and Young is acting as the company’s bankruptcy trustee, attempting to find its assets and recover funds.
• Bitcoin that had been sitting in QuadrigaCX’s cold wallets has been moved elsewhere.

QuadrigaCX is a Canadian crypto exchange that made headlines back in January 2019 when it collapsed in dramatic fashion after its founder, Gerald Cotten, passed away due to complications from Crohn’s disease. The exchange owed thousands of customers around $200 million in crypto at the time, and it later came out that Cotten had misappropriated customer funds for personal purposes, leaving behind little paperwork or records for investigators to verify what assets or liabilities Quadriga had.

Since then, Ernst and Young, a Big Four auditor, has been appointed as the company’s bankruptcy trustee and has spent much of the last three years investigating Quadriga, attempting to find its assets and recover the funds. Furthermore, the Canada Revenue Agency has been digging into Quadriga to check on taxes that the exchange may not have filed when it was operating. Ernst & Young recently reported that it has become aware that bitcoin (BTC) that had been sitting in QuadrigaCX’s cold wallets has been moved elsewhere.

This news comes shortly after former FTX CEO Sam Bankman-Fried was released on a $250 million bond after being placed under house arrest. QuadrigaCX’s case has been a long and complex one, and while it appears that some of the lost funds may be recovered, it’s likely that much of the money will never be found.