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Canadian law firm Miller Thomson has hired consultancy firm Kroll that in partnership with Coinfirm will perform blockchain analytics work related to the ongoing dissolution of QuadrigaCX.
After the death of QuadrigaCX founder Gerald Cotten and the crypto security keys ‘buried’ with him last year, the case regarding customer reimbursement is still going on.
In a bid to present tangible evidence in the court, Canadian law firm, Miller Thomson, has hired consultancy firm, Kroll in partnership with Coinfirm to perform blockchain analytics work.
“Since being founded in early 2016, Coinfirm has created a powerful analytics engine for blockchain tracing exercises,” the case update reported. “The Kroll/Coinfirm partnership will use a combination of professionals as needed with experience in cryptocurrency, asset tracing/searching, asset recovery, fraud investigations, and data analytics.”
According to the update, Kroll will receive a fee of $50,000 CAD ($38,000 U.S.) and is indemnified against any potential lawsuit up to $150,000 CAD ($114,000 U.S.).
Miller Thomson was apparently appointed to represent Quadriga’s former customers last year, alongside Ernst & Young (EY).
In a sworn affidavit filed at the beginning of last year with the Nova Scotia Supreme Court, Jennifer Robertson, who is identified as the widow of QuadrigaCX founder Gerald Cotten, admitted the exchange owes its customers roughly $250 million CAD in both cryptocurrency and fiat.
Notably, as of Jan. 31, 2019, the exchange was reported to have roughly 115,000 users with balances signed up on the exchange, with $70 million CAD in fiat and $180 million CAD in crypto owed overall, according to the filing.
The exchange holds roughly 26,500 bitcoin ($92.3 million USD), 11,000 bitcoin cash ($1.3 million), 11,000 bitcoin cash SV ($707,000), 35,000 bitcoin gold ($352,000), nearly 200,000 litecoin ($6.5 million) and about 430,000 ether ($46 million), totaling $147 million, according to the affidavit.
Kroll and Coinfirm on the Case
The case is dragging on so much which is significantly disadvantaging its customers waiting to be reimbursed their cash. Due to banks’ call for total non-disclosure of personal accounts, clear account balances have not been provided to deal with the case.
A fifth payment processor called WB21 is said to be holding roughly $9.2 million USD tota on Quadriga’s behalf. However, WB21 was cited refusing to release the funds or respond to communications from Quadriga on the basis of confidentiality duties.
With the partnership of Kroll and Coinfirm, the case is anticipated to have firm grounds during the oncoming proceedings.
Exchange decentralization is a key thing to consider in future to avoid such incidents when a sole person has control over all customers funds.