Inside the report, the review firm has identified six separate crypto wallets that were primarily principally to store Bitcoin (BTC), the cryptocurrency most used on the platform. Aside from one incidental exchange of Bitcoin adding up to about $500,000, there have been no stores in the wallets since April 2018. Moreover, the report states:
“To date, the Applicants have been unable to identify a reason why Quadriga may have stopped using the Identified Bitcoin Cold Wallets for deposits in April 2018, however, the Monitor and Management will continue to review the Quadriga database to obtain further information.”
In early days of February, the exchange filed for creditors protection when — after the death of its founder Gerald Cotten — it lost access to the cold wallets and comparing keys, that apparently held the benefits owed to different clients. Since then, the exchange, the court, EY and investigators have been navigating a convoluted process to ascertain where the funds went.
The present report likewise expresses that, inside the course of its investigation, EY has found 14 users records that “may have been created outside the normal process by Quadriga” and that “[i]t appears that the Identified Accounts were created under various aliases.” The report proceeds:
“…the Identified Accounts were internally created without a corresponding customer and used to trade on the Quadriga platform. [EY] was further advised that deposits into certain of the Identified Accounts may have been artificially created and subsequently used for trading on the Quadriga platform.”
The monitor has also been trying to secure transaction and account balance data from the platform, which is stored on the cloud by Amazon Web Services, however:
“Due to the account being a personal account in the name of Mr. Cotten, AWS has indicated that it is unable to provide the Monitor with access to the AWS Account to permit a copy of the data that it is hosting to be secured.”
Prior this week, cryptocurrency exchange Kraken offered a $100,000 rewards for tips that could prompt the discovery of QuadrigaCX’s missing funds. The reward can be collected in either fiat or digit (Federal Bureau of Investigaion), RCMP (Royal Canadian Mounted Police) or other law enforcement authorities, who have an active interest in this case.”