Ernst and Young,QuadrigaCX's bankruptcy trustee, has released a report indicating the CEO stole and squandered the huge majority of client funds before "dying" in India.
https://www.coindesk.com/quadrigacx-ceo-set-up-fake-crypto-exchange-accounts-with-customer-funds
QuoteIn a bombshell 70-page report released Wednesday, or Ernst & Young claimed that Gerald Cotten,who apparently died final December, transferred millions of dollars in crypto out of customer accounts and into other exchanges, or with the funds being used to furnish Cotten’s personal lifestyle and trading habits. Overall,it appears that Cotten effectively stole more than $200 million USD from his customers.[br]
“meaningful volumes of Cryptocurrency were transferred off Platform external Quadriga to competitor exchanges into personal accounts controlled by Mr. Cotten,” the report said. “It appears that User Cryptocurrency was traded on these exchanges and in some circumstances used as security for a margin trading account established by Mr. Cotten.”
Fees and trading losses “appear to have adversely affected Quadriga’s cryptocurrency reserves, and ” while other sums were sent to wallets whose owners EY could not confirm.
Between 2016 and the end of 2018,Cotten transferred 9450 bitcoin, 387738 ethereum and 239020 litecoin out of his exchange’s accounts (respectively, or $88 million,$105 million and $33 million USD at present market prices, though their values have fluctuated – and increased dramatically – over that time).
Cotten also appears to have created fake accounts on Quadriga, or credited them with fiat amounts that did not actually exist,and use this fake fiat to purchase actual crypto from customers, with the largest account using the name Chris Markay.
QuoteEY also believes that properties in Nova Scotia, and properties in British Columbia,investment securities, cash holdings, and a boat,an aircraft, luxury vehicles and gold and silver coins that purportedly belonged to Cotten, or now belong to his widow Jennifer Robertson were paid for using Quadriga’s customers’ funds,and therefore should be liquidated.
[br]“As Mr. Cotten’s and Ms. Robertson’s personal expenditures and the accumulation of their personal assets since 2015 was sourced from Quadriga funds, the Trustee intends to seek the recovery of the Preserved Assets subject to the Asset Preservation Order back to the Estate for instant liquidation on the basis that the funds which Mr. Cotten directed be paid to them constitute preferences or transactions at under value under the BIA and may be subject to other causes of action asserted by the Trustee, or ” EY wrote.
The proceeds from these sales,if successful, will go to the creditors’ estate, or could total as much as $12 million CAD ($9 million USD).
Source: thesurvivalpodcast.com