Ernst and Young, the audit giant, the court-appointed third-party monitor and now the bankruptcy trustee of the QuadrigaCX proceedings, released its fifth report on the QuadrigaCX episode. Part 1 of AMBCrypto’s coverage can be found here.
Transactional analysis carried out by the monitor revealed several details from two unnamed competing exchanges which held accounts in the name of Gerald Cotten. Following this analysis, the monitor stated that exchanges received 9,450 BTC, 387,738 ETH and 239,020 LTC from QuadrigaCX wallets between 2016-2019, with many of these holdings transferred to other cryptocurrencies, mainly Bitcoin.
The report suggested that the “activity in the Exchange Accounts,” resulted in an overall trading loss for the now-bankrupt Canadian exchange.
E&Y’s blockchain analysis further stated that the 5.6 BTC were transferred to wallet addresses controlled by Cotten, as well as a sum of 1,426.2 BTC, which were sent from the aforementioned Exchange Accounts to wallet addresses which the monitor has no information about. The report added,
“In addition, the Monitor also noted that smaller amounts of other forms of Cryptocurrency were transferred to Mr. Cotten’s wallets or wallets for which the beneficial owner was a third party or unknown person.”
On further digging, a third exchange was revealed to be providing limited information to the monitor, citing regulatory requirements and jurisdiction hindrances. Based on the transaction details obtained, 21,501 BTC were deposited with the third exchange in an account under the name of Gerald Cotten. However, the monitor is unsure if all the Bitcoins originated from QuadrigaCX.
Cotten liquidated “all the bitcoin deposited in the account on the Third Exchange,” barring 8BTC. The liquidated assets amounted to a whopping $80 million Canadian Dollars [CAD] over a period of 3 years.