QuadrigaCX’s Customers Accuse Ernst & Young of Loosing 103 BTC
The Ernst & Young audition company has refused to elaborate on the loss of 103 BTC in possession of ex-customers of QuadrigaCX.
According to CoinDesk, 103 BTC was accidentally transferred to the purses of the late founder of the exchange Gerald Cotten. If the passwords are not restored, it will be impossible to bring the funds back.
The Nova Scotia Supreme Court, which oversees the exchange’s liquidation, ordered EY to control the funds recovery, and Miller Thomson and Cox & Palmer to represent the legal customers’ interest.
The mistake happened in February, when the lost Bitcoins valued at $375 000. Currently, the coins would be worth $1 million.
Six months later, EY still has not provided fully developed explanations regarding the transfer of the assets. In the report posted at the end of February, the company stated that the loss was caused by a platform setting error. QuadrigaCX creditor Ali Mousavi told the outlet:
“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.”
Creditor Xitong Zou also said that “EY does not seem like they want to explain what happened when that’s the very least they could do” since “it was our money, after all.” He also claims:
“A lot of people want [Miller Thomson] replaced. [...] Although I don’t think that’s going to happen.”
Some creditors claim to be cheated. Exchange client Matt McPherson told CoinDesk that the most disappointing thing for him in this situation is that Miller Thomson is not even considering fraud.
Seaton Zaw, another exchange customer, says: “It seems that EY does not want to explain what happened when it is the smallest thing they can do. In the end, it’s our money. ” He said that many customers do not even want compensation for lost bitcoins, but simply an explanation of what exactly happened. Mousavi added:
Apparently, everything that Gerald could not steal is being stolen by EY and Miller Thomson.
To date, EY has managed to recover about $ 25 million; however, the judge awards $ 1.6 million in fees and expenses to the companies involved in the case. EY hopes to receive another $ 9 million from the sale of personal assets from Cotten’s property (including luxury cars, a boat and real estate), which, according to EY, were purchased at the expense of exchange customers. Currently, the exchange is in the framework of bankruptcy proceedings. This means that EY, Miller Thomson and other companies will receive additional payments in the future.
In a public chat with Quadriga lenders on Telegram, Miller Thomson partner Asim Iqbal repeated that “it was a mistake in the platform’s settings”, due to which 103 bitcoins were accidentally transferred to inaccessible wallets. Iqbal provided some additional information, citing a non-disclosure agreement. In his Iqbal, the name of the person responsible for the slip, whom he called the “Quadriga representative,” will not be disclosed.