What the Case of Quadriga Reminds Us
February 21 2019 - 12:16PM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
February 21, 2019 -- ADVFN Crypto NewsWire -- 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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