Crypto firm sends $519,000 in Bitcoin to dead man's wallet

Crypto firm sends $519,000 in Bitcoin to dead man's wallet

Crypto firm sends $519,000 in Bitcoin to dead man's wallet

Once again, the exchange platform has involved itself in new trouble, which can cost it a whopping $500,000 in Bitcoin (BTC).

Canadian digital currency platform Quadriga inadvertently transferred nearly C$470,000 ($355,226) worth of bitcoins to a storage that it is unable to access after the firm's founder died, a court-nominated monitor said in a report.

The mistake is only the latest issue for the exchange, whose CEO and founder, Gerald Cotten, died in India late previous year. The exchange has been unable to access its cold wallets since, as Cotten was exclusively responsible for the wallets and corresponding keys.

Now Ernst and Young, which is acting for the company, has reported QuadrigaCX sent 103 bitcoin - around AU$519,000 - to the cold storage wallet it was locked out of.

His widow, Jennifer Robertson, has said in court documents that Cotten was the only person with access to his laptop, which is thought to contain the digital keys to the cold wallets containing the missing cryptocurrency.

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In the course of the audit, Ernst & Young secured a number of Quadriga electronic devices - reportedly owned or used by Cotten - including four laptops, four cell phones, and three fully encrypted USB keys. The exchange already owes customers $250 million in CAD ($190 million U.S.) in cryptocurrencies and fiat.

To avoid future crypto-catastrophes, Ernst and Young plans to transfer QuadrigaCX's remaining cryptocurrency to another cold wallet that the professional services firm can access. According to the document, the devices are now in a safety deposit box rented by Ernst & Young.

The exchange previously appointed "Big Four" audit company Ernst & Young as an independent third party to monitor the proceedings in a creditor protection case.

The report also did not specify how many cold wallets there are.

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