QuadrigaCX is a crypto exchange that was having a hard time recovering from the collapse it suffered after the death of its chief executive officer. As of now, it has twenty-one mln dollars ($21 mln) worth of assets.
Despite this, it is heavily indebted with over one hundred and sixty mln dollars ($160 mln) in debt. Those three companies include Quadriga Fintech Solutions Corp., Whiteside Capital Corporation and 0984750 B.C. Ltd.
Ernst and Young (EY) recently released a report that covers illegal activities conducted by three companies that were associated with QuadrigaCX.
For number one we have Quadriga Fintech Solutions. It possessed over one hundred eighty-nine thousand three hundred forty-five dollars ($189,345 USD) but owed over a hundred sixty mln ($160,051,461 USD).
Next in line is Whiteside Capital Corporation. It possessed no assets and owed over one hundred fifty-nine mln dollars ($159,875,011 USD as well as a hundred sixty mln dollars ($160,688,982 USD).
The employee at Ernst & Young gave a statement on the issue saying that they were faced with some material inconsistency with the money.
Some irresponsible bookkeeping was also an issue they faced when they were trying to calculate the money in the possession and the money owed to others.
In addition to this, no crypto assets were found in the cold wallets listed by Quadriga. Only the one hundred and three (103 bitcoin) were found which were apparently transferred by mistake from a hot wallet.
The processed transaction volume and the number of other such entities and cryptocurrency exchanges involved have not helped in the investigation.
The Ernst & Young employee stated that funds had been used to make personal purchases. Prevention of the liquidation of any assets has also been set in place. The employee of Ernst & Young reported that the case will take some time.