QuadrigaCX Lost Hundreds Of Thousands In Bitcoin Cold Wallet Transfer

Blockchain, FinTech, Investing, News, Regulation | February 13, 2019 By:

The bad news continued for Canadian exchange QuadrigaCX today, as the court-appointed monitor discovered that $378,000 worth of bitcoin was accidentally lost in a transfer to cold storage.

Ernst and Young, the accounting firm overseeing the exchange, said 103 bitcoins were lost last week in the transfer.

“On February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately $468,675 to Quadriga cold wallets which the company is currently unable to access. The Monitor is working with Management to retrieve this cryptocurrency from the various cold wallets, if possible,” the monitor report said.

QuadrigaCX reportedly cannot access any of its cold storage funds after the death of its CEO, Gerald Cotten, who passed away and retains the only passwords. The storage accounts are frozen and the estimated 115,000 holders. Why this latest round of transfers was made to the same inaccessible wallets was not answered by reports.

The mistake is only the latest issue for the exchange, whose CEO and founder, Gerald Cotten, died in India late last year. According to a previous court filing by Quadriga, Cotten was the only member of the team to know how to access its cold storage wallets, meaning the majority of its crypto holdings were frozen.About $136 million US is believed to be held in cold storage.