Three Years Later, QuadrigaCX Still under the Microscope of Blockchain Analytics Firm. Here’s Why…
QuadrigaCX is still under the microscope after the death of founder Gerald Cotton (possibly in December 2018) cost customers over $250 million. Miller Thomson, the Canadian law firm representing a base of QuadrigaCX customers looking to get at least some of their money back is now working alongside well-known auditor Ernst & Young and a blockchain analytics firm, Kroll Associates, to try to look into subsets of data that might reveal what happened with transactions that cost Canadians their money.
And since the volume of the transactions is worth so much to customers, Kroll Associates won’t be handling the issue alone. A firm based out of London, called Confirm, will also be chipping in to get the work done.
The Cost of Uncovering the Origins of a Hack
With such a high dollar amount of funds missing, it might be surprising to know that the blockchain analytics companies now involved in the case against QuadrigaCX, Kroll Associates, will only be taking a fee of $50,000 to do the work. It may not sound like a lot, but the legal process has already been drawn out, and ultimately if the reason for the funds going missing isn’t uncovered, and none of the assets can actually be given back to customers, they will likely be out the money.
All Hope is Not Lost. Funds are Being Dispersed
While it’s certainly disheartening to the thousands of Canadians who lost money because of the QuadrigaCX incident known as a Ponzi scheme, so far Ernst & Young has located over $46 million of those funds and been able to pay some of it back to creditors. That being said, more than 76,000 users are affected by the outcome of this case and there are nearly 17,000 claims to deal with.
There is still much work to be done for Ernst & Young, the two blockchain analytics firms and all the creditors affected by these latest events. But the lesson here for investors remains: Store your crypto assets on a hardware wallet.
Written by: Jack Choros
Writer, content marketing at Netcoins.