Nova Scotia

QuadrigaCX's inadvertent transfer due to 'platform setting error'

The court-appointed monitor overseeing the search for the roughly $260 million owed to clients of the embattled QuadrigaCX cryptocurrency exchange says the bitcoin transfer it "inadvertently" made this month was due to a "platform setting error" that prompted the automatic transaction.

Report also says crypotcurrency exchange has 'no accessible funds' to fund its creditor protection proceedings

The sudden death of Gerald Cotten, founder of QuadrigaCX, sent the cryptocurrency exchange into a tailspin. (Facebook/QuadrigaCX)

The court-appointed monitor overseeing the search for the roughly $260 million owed to clients of the embattled QuadrigaCX cryptocurrency exchange says the bitcoin transfer it "inadvertently" made this month was due to a "platform setting error" that prompted the automatic transaction.

Ernst & Young also said in its second report that it has confirmed that the insolvent company's cold-storage wallets continue to hold approximately 104 bitcoins. It had said that 103 bitcoins had been transferred out on Feb. 6.

The report adds that the Vancouver-based company on Feb. 14 transferred bitcoin, litecoin and other cryptocurrencies over to cold-storage, or offline, wallets controlled by the court-appointed monitor.

The monitor says QuadrigaCX transferred roughly 51.1 bitcoins, 33.3 bitcoin cash, 2,032.7 in bitcoin gold, 822.3 litecoin and 951.5 ether, which will be held pending further order of the court.

The report also says that the cryptocurrency exchange, which was granted creditor protection and appointed a monitor earlier this month, has "no accessible funds" to fund its creditor protection proceedings and pay creditors other than interim financing "which will be exhausted in the near term."

Ernst & Young says there are three immediate sources of funds available, such as bank drafts and money held by third-party processors, and the company and the monitor are taking steps to facilitate access.

This week, a Nova Scotia Supreme Court judge appointed Toronto law firm Miller Thomson along with the Halifax firm Cox & Palmer as representative counsel for 115,000 clients owed money.

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