Quadriga management ‘error’ the cause of recent cryptocurrency transfer, Ernst & Young says – The Globe and Mail

Published February 21, 2019 Updated February 21, 2019 The court-appointed monitor overseeing the search for millions of dollars lost by a Canadian cryptocurrency exchange says an additional $500,000 worth of bitcoin was transferred earlier this month as a result of a company “error.” On Feb. 6, the day after the Nova Scotia Supreme Court granted QuadrigaCX creditor protection and appointed Ernst & Young as monitor, the beleaguered cryptocurrency trading platform inadvertently transferred roughly 104 bitcoins to cold storage wallets it cannot access, according to a report filed with the court. Cold wallets are offline storage facilities where cryptocurrency is typically held to protect it from hackers. Now, in a report released on Thursday, Ernst & Young says it was told by Quadriga’s management that the company mistakenly changed a setting on the platform that triggered an automatic transfer of bitcoin from the company’s “hot” wallets – those accessible online – to its cold wallets. Story continues below advertisement “The Monitor understands from Management that the inadvertent transfer occurred due to a platform setting error by [Quadriga] …” the report reads. “The Monitor has viewed the wallet addresses that received the cryptocurrency as a result of the setting change and has confirmed that the transfers occurred at the time noted by Management and that the Quadriga cold wallets continue to hold approximately 104 bitcoins.” Read more How did QuadrigaCX work? A guide to complicated crypto trading How did Gerald Cotten die? A Quadriga mystery, from India to Canada and back Crypto chaos: From Vancouver to Halifax, tracing the mystery of Quadriga’s missing millions The company has said it has been unable to access its cold wallet storage since the death of chief executive Gerald Cotten, who, according to his widow, Jennifer Robertson, was the only one able to do so. The
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