EY Requests to Move QuadrigaCX Crypto Exchange Bankruptcy Case

Published at: Aug. 28, 2019

EY, the Big Four accounting firm appointed to work on the QuadrigaCX crypto exchange bankruptcy case, wants to move the proceedings from Halifax to Toronto.

Local news outlet The Star reports on Aug. 28 that EY has asked a Nova Scotia Supreme Court judge to move the case to Toronto. The firm states that the involvement of four law enforcement agencies has added to the complexity of the case, which has shifted focus to entities based in Ontario. 

Bankruptcy proceedings began earlier this year when the exchange’s founder Gerry Cotten passed away unexpectedly in 2018. Cotten was the sole individual in possession of the keys to unlock the exchange’s cold wallets containing some $145 million in user assets.

The financial crime divisions of both the Federal Bureau of Investigation and the Royal Canadian Mounted Police have confirmed ongoing QuadrigaCX investigations. The exchange’s creditors reportedly approved the request for a change of jurisdiction.

EY says that moving the case to Toronto would decrease its cost, since most of the professionals involved are now in Ontario, where multiple court appearances are anticipated.

Lost crypto

Earlier this month, QuadrigaCX users requested information from EY concerning the loss of over 100 Bitcoins (BTC) during the funds’ recovery. In February, EY announced, “Quadriga inadvertently transferred 103 Bitcoins valued at approximately $468,675 to Quadriga cold wallets, which the Company is currently unable to access.”

In June, EY released a report claiming that Cotten was allegedly transferring user funds off the exchange and using them for his own margin trading on other platforms.

Tags
Altcoin
Cryptocurrency Exchange
Court
Quadrigacx
Related Posts
QuadrigaCX’s Legal Representatives Create Affected Users Committee
A new committee appointed by law firms Miller Thomson and Cox & Palmer will provide guidance in representing affected clients of major Canadian cryptocurrency exchange QuadrigaCX. The development was announced in a court notice on March 19. In the filing, Miller Thompson reveals that it has established the Official Committee of Affected Users of now-shuttered QuadrigaCX, comprising of seven users affected by the shutdown of the trading platform following the sudden death of its co-founder, Gerald Cotten, last December. At the time, the exchange reported that it was not able to access its cold wallet holdings, as Cotten had purportedly …
Altcoin / March 20, 2019
Widow of QuadrigaCX Founder Seeks Compensation for Creditor Protection Court Costs
The widow of the founder of now-defunct cryptocurrency exchange QuadrigaCX has asked the court for $225,000 in compensation for legal costs, Bloomberg reports on March 4. Jennifer Robertson, the wife of late QuadrigaCX founder Gerry Cotten, is seeking repayment for financing used to help the crypto exchange acquire court-approved protection from creditors. After $145 million in crypto assets went missing following Cotten’s death, Robertson provided interim financing for legal proceedings. According to Bloomberg, Robertson paid CA$300,000 (~$225,000), which covered Big Four audit firm Ernst & Young’s (EY) appointment as a monitor to the legal proceedings, in addition to fees associated …
Altcoin / March 5, 2019
Former Kraken Employee Sues Exchange for ‘Unethical and Illegal Business Tactics’
A former employee of United States-based cryptocurrency exchange Kraken initiated legal proceedings against the company in connection with a breach of contract and sanctions violations, among other issues. Per a court document filed on Nov. 26, Nathan Peter Runyon — a marine wartime veteran and ex-employee of Kraken, where he served as a financial analyst under the exchange’s chief financial officer Kaiser Ng — brought the case to court accusing the company and Ng of an array of legal violations and falsifications. A range of accusations Specifically, Runyon accused Kraken of unethical and illegal business tactics, defrauding employees over their …
United States / Dec. 18, 2019
Judge Rules Coinbase Did Not Commit Fraud in Bitcoin Cash Lawsuit
Cryptocurrency exchange Coinbase did not act fraudulently during its botched launch of Bitcoin Cash (BCH), a United States judge has ruled. Coinbase accused of insider trading BCH listing In a court order issued on Aug. 6, U.S. District Judge Vince Chhabria of the Northern District of California (San Francisco) threw out claims by traders that Coinbase committed fraud by halting trading after two minutes. The move is the latest in a protracted lawsuit brought by trader Jeffery Berk over the events, which occurred in December 2017. At the time, BCH was only four months old and still being added to …
Altcoin / Aug. 7, 2019
Canadian Judge Approves $1.6M in EY, Legal Firm Fees in QuadrigaCX Case
The Supreme Court of Nova Scotia, Canada, has approved over $1.6 million in fees for parties seeking funds from former Canadian cryptocurrency exchange QuadrigaCX, according to recently released court documents. Justice Darlene Jamieson ordered to approve the activities, fees and disbursements incurred by the Monitor — Big Four audit firm EY — in the ongoing proceedings of QuadrigaCX. The exchange ostensibly lost access to its cold wallet holdings following the death of its founder, Gerald Cotten, in December 2018, and now owes over $198.4 million to an estimated 115,000 users. Jamieson also approved the fees and disbursements of representative counsel, …
Blockchain / July 31, 2019