Ernst & Young: Quadriga’s Cold Wallets Have Been Empty Since April 2018

Ernst & Young, an independent monitor of crypto exchange Quadriga, researched into the platform’s cold wallets. It turned out that they had been empty since April 2018.


At the beginning of 2019, Quadriga announced the death of CEO Gerald Cotten. Allegedly, he alone had access to cold wallets of crypto exchange, where $145 million in cryptocurrency was stored. Managers claim that after death the platform lost access to this money.

Ernst & Young — an independent monitor of the exchange, who was appointed by the court — conducted own investigation and identified 6 wallets, where Quadriga kept the BTC and another address where other cryptocurrencies were kept. As stated in the report of the auditor, the total balance of these wallets at the end of the month in the period from April 2014 to the same month of 2018 ranged from zero to 2,776 BTC.

In April 2018, someone withdrew all the money from these wallets, and their total balance went down to zero. After that, these addresses received cryptocurrency from other exchanges, but the money was immediately transferred to Quadriga’s hot wallets. Now, these wallets are completely empty.

Ernst & Young found out that part of the BTC from the cold wallets of Quadriga went to other crypto exchanges. The auditor did not disclose the name of exchanges, but Ernst & Young asked these platforms to assist in the investigation.

The auditor also found another 14 accounts on Quadriga, which were created to bypass the rules of the exchange. They were used for trading on the exchange.

  • According to the Coinbase investigation, Quadriga has suffered from mismanagement and a lack of liquidity. And top managers of the exchange could use the death of the CEO to hide the evidence of it.
1 year ago

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