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October 16, 2018

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What the Case of Quadriga Reminds Us

February 21, 2019

 

Quadriga CX’s former users have still not received any sort of compensation for the exchange’s alleged misappropriation of their funds to currently inaccessible cold wallets. Related to this, by all appearances, the company’s former CEO, Gerald Cotten, may still be considered deceased, despite effective conspiracy theories that suggest the opposite.

 

Now, the latest piece of news to come to light in the never-ending saga of events surrounding this misfortune occurrence is that Ernst & Young has been appointed to handle Quadriga’s remaining funds while they enter court proceedings with their former clients.

 

Though EY only began to act in their new role a week ago, they have already attempted to explain Quadriga’s recent blunder involving sending 104 BTC to an inaccessible wallet, by reportedly stating that it happened because of a platform error on the side of the customer. According to CoinDesk, EY is not really expected to defend Quadriga, but mainly to hold onto any and all of their funds until the court makes some sort of decision related to the suits that have been brought against them.

 

Given that even Cotten’s widow has agreed that the exchange owes its’ customers a considerable amount of money, which in her case means $190 million, the end might be closer than it seems for the embattled company.

 

At this point, the major issue for the court and the company to solve is how to pay customers that amount of money when they apparently have lost access to the bulk of their holdings in the wake of Cotten’s death. In addition to this, even though little evidence seems to have publicly arisen to corroborate the idea, you can expect that authorities are also investigating whether Cotten is truly dead. In the end, whatever the courts decide, a precedent will be set for the future of crypto-related disputes of this nature. Here’s to hoping that it is one that protects the customer, while avoiding too much centralization.

 

 

 

By: BGN Editorial Staff

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