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Investigation of QuadrigaCX cryptocurrency debacle turns up $28 million in assets

Click to play video 'QuadrigaCX CEO’s friend offers insight into cryptocurrency mystery' QuadrigaCX CEO’s friend offers insight into cryptocurrency mystery
WATCH: The sudden death of QuadrigaCX CEO Gerald Cotten has left $250 million worth of cryptocurrency inaccessible after he failed to share the password – Apr 18, 2019

The accounting firm trying to recover more than $200 million owed to users of the now-defunct QuadrigaCX cryptocurrency platform has turned up only $28 million in assets – virtually all of it in cash.

Ernst and Young, which is overseeing bankruptcy proceedings, has issued a preliminary report saying it may not be possible to complete a full review of QuadrigaCX’s finances, given the poor state of the company’s bookkeeping.

READ MORE: Nova Scotia judge briefly extends creditor protection for Quadriga exchange

The report says the investigation has also been hampered by a lack of co-operation from some of QuadrigaCX’s business partners and the sheer volume of transactions under scrutiny, which number in the millions.

The accounting firm says that as of last month, QuadrigaCX and its associated holding companies owed 76,000 creditors a total of $215.7 million.

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The online exchange offered an unregulated platform for users to store and trade digital assets like Bitcoin, Litecoin and Ethereum.

WATCH: Creditor protection extended for cryptocurrency exchange QuadrigaCX (March 5) 

Click to play video 'Creditor protection extended for cryptocurrency exchange Quadriga' Creditor protection extended for cryptocurrency exchange Quadriga
Creditor protection extended for cryptocurrency exchange Quadriga – Mar 5, 2019

Vancouver-based QuadrigaCX was shut down in January after its founder and sole director, 30-year-old Gerald Cotten of Fall River, N.S., died Dec. 9 while travelling in India.

The entire enterprise was thrown into a tailspin when it was revealed Cotten was the only person who knew the passwords to gain access to the company’s offline cryptocurrency reserves.