NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Crypto Bulls Rejoice: Congresswoman Confirms Powell’s Imminent Firing
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Crypto Bulls Rejoice: Congresswoman Confirms Powell’s Imminent Firing

Does Ernst & Young’s Report on QuadrigaCX Debacle Support this Conspiracy Theory?

Rick Delafont
Rick Delafont
6 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

According to a report by the firm appointed to oversee the financial affairs of now defunct crypto exchange QuadrigaCX, the trading venue has only $21 million of a total $160 million it owes out. The exchange shut up shop earlier this year a month after its CEO supposedly died in mysterious circumstances.

The revelation seems to lend support to a speculative theory posited by Coinbase’s Brian Armstrong in February. Armstrong said that QuadrigaCX’s CEO’s sudden death may have been used as a scapegoat for the company’s overall mismanagement of its finances.

Did QuadrigaCX Ever Have Crypto in Cold Storage?

A report dated May 1 but that appears to have been published later states that QuadrigaCX does not have the money it owes out to creditors. Ernst and Young, the court-appointed monitor and trustee in the case, has only managed to track down around $21 million in assets of a total $160 million that is owed out by the exchange.

The report details the assets held by three different legal entities that are associated with the now-defunct trading venue. Quadriga Fintech Solutions reportedly holds $189,345 and owes $159,875,011. Whiteside Capital Corporation holds $189,345 and owes $159,875,011. Finally, 0984750 B.C. holds $28,649,542 and owes $215,697,147. A further, $500,000 in a variety of crypto assets was also recovered from one of the exchange’s hot wallets.

The author of the Ernst and Young report, George Kinsman, states that poor book keeping has been an issue with compiling the figures published this week. This, coupled with the fact that the firm could not find the cryptocurrencies in cold storage that supposedly became inaccessible with the death of Quadriga’s CEO, appears to lend support to a theory posited by Brian Armstrong of Coinbase in February:

https://twitter.com/brian_armstrong/status/1098656491609849856?lang=en

Whilst being careful to state that he was merely speculating on possible causes of the exchanges missing funds, not making accusations, Armstrong states that the death of Cotton Gerard may have been used as a scapegoat to cover up a gaping hole in the company’s finances. This may have been caused by a technical error, detailed in a post by the exchange itself at the time, made when upgrading to a new version of Geth in 2017 and exacerbated by the crippling bear market of 2018:

“They suffered a multimillion dollar bug in June 2017 (before things went vertical)… This is when we start to see movement of funds to ‘cold storages'”

The statement from the exchange claims that although the issue ate into profits “substantially”, it would not impact the future running of the exchange.

Armstrong speculates that the damage done may have been much greater than the trading venue let on at the time and that attempts to try to “trade their way out of a hole” may have ultimately failed due to the spectacular crash in crypto prices during 2018:

“Sequence of events suggests this was a mismanagement with later attempt to cover for it.”

Armstrong goes on to state that the exchange might seized the opportunity presented by Cotton Gerard’s death to explain its financial shortcomings. Withdrawal issues cited by users of the exchange before Gerard died lend support to the theory that the exchange’s finances were already suffering before the incident that supposedly lost the missing crypto assets:

“So maybe after about a month of debate [Dec – Jan], management decided to cut losses and release a statement claiming that access to money was lost with CEO’s death?

“While this story isn’t perfect, it does seem plausible. I do want to emphasize that these are our best guesses based on the available data. As the case unfolds we might find out we were incorrect.”

Legal proceedings are ongoing with QuadrigaCX. NewsBTC will bring you more on this story as it develops.

 

Related Reading: Court Grants Quadriga Deadline Extension, $145M in Crypto Still in Limbo

Featured Image from Shutterstock.
Tweet123Share218ShareSend
Rick Delafont
Rick Delafont

Rick Delafont

Based in Europe, Rick has written about the cryptocurrency industry since 2016. He was first drawn to Bitcoin as a means of payment but quickly became fascinated by its wider potential implications. His interests lie in the political, economic, and social impact of the unfolding digital asset revolution.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

crypto news altcoin season

Top Crypto Analyst Confirms Altcoin Season: ‘It Starts Now’

Renowned crypto analyst Josh Olszewicz has declared what many crypto traders have long been waiting for: Altcoin Season has officially...

Jake Simmons 1 hour ago
token6900

SPX6900 je dosegel novo najvišjo vrednost

Meme kovanec SPX6900 je pravkar dosegel novo rekordno vrednost. Navdušeni opazovalci kriptovalut pa trenutno kot najboljšo priložnost za 1000-kratno rast...

tanjapotocnik 1 hour ago
Coinbase

Coinbase Unveils ‘Super App’ To Expand Crypto Access–Details

Crypto exchange Coinbase has launched a new initiative with its “Base App,” aiming to broaden access to the crypto economy....

Ronaldo Marquez 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

La Camera approva il riesame dei disegni di legge GENIUS, CLARITY e Anti-CBDC

clararosati 8 minutes ago
Pakistan and El Salvador Team Up on Crypto — What It Means for the Best Presales Right Now

Pakistan and El Salvador Team Up on Crypto — What It Means for the Best Presales Right Now

Aaron Walker 34 minutes ago
xrp etf

Cena XRP vyskočila nad 3 $, keď SEC schválila nové ETF od ProShares

Karol Paták 1 hour ago

Premium Sponsors

Press Releases

  • Conheça as melhores novas criptomoedas em pré venda em 2025

    Mùa Meme Coin Đã Bắt Đầu? Bonk, Pepe Tăng Mạnh...

    3 hours ago
  • BONK Tăng Mạnh Gây FOMO – TOKEN6900 Có Phải Là...

    3 hours ago
  • Altcoin

    Những Alt coin Tốt Nhất Nên Mua Ngay Khi Bitcoin...

    4 hours ago
  • 2 kryptoměny s extrémně vysokým oceněním, které mohou stát za to riziko

    2 kryptoměny s extrémně vysokým oceněním, které...

    18 hours ago
  • 2 rendkívül magas árfolyamú kriptovaluta, amelyeket érdemes lehet kockáztatni

    2 rendkívül magas árfolyamú kriptovaluta, amelyeket...

    19 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.