QuadrigaCX to Keep Losing Money

Ernst and Young reports Quadriga "inadvertently transferred 103 bitcoins" to wallets without access
13 February 2019   682

QuadrigaCX, the problematic Canadian crypto-exchange, which owed users about $ 190 million, lost another 500 thousand Canadian dollars (about $ 370 thousand) last week due to an error.

According to the initial report of the audit firm Ernst and Young (EY), the exchange, by mistake, moved more than 100 BTC to a “cold” wallet to which there is no access.

On February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately $468,675 to Quadriga cold wallets which the Company is currently unable to access. The Monitor is working with Management to retrieve this cryptocurrency from the various cold wallets, if possible.

Ernst and Young Report

Also, the document states that EY will take control of the exchange funds remaining on the “hot” wallets, transferring them to their own “cold” wallet. These assets include 51 BTC, 0.014 Bitcoin SV, 33 Bitcoin Cash, 2000 Bitcoin Gold, 800 Litecoin, and 950 Ethereum coins.

Among other things, EY will take control of "various electronic devices allegedly owned by ex-head of the exchange Gerald Cotten or which he could use in the company's operations." These items include four laptops, four mobile phones, and three encrypted USB keys.

The report also states that EY works with several third-party payment processors in an attempt to unblock access to the fiat balance sheets of the exchange. However, so far these attempts have not been successful.

China to Finance Hacker Attacks on Exchanges, - FireEye

Experts believe that the victims of APT41 are industry participants, the development of which is a priority in the current Chinese five-year period
08 August 2019   276

The hacker group APT41 attacks companies in the areas of healthcare, telecommunications, fintech, media, and cryptocurrency exchanges. This activity is funded by the Chinese government, according to analysts of cybersecurity company FireEye.

Experts believe that the victims of APT41 are industry participants, the development of which is a priority in the current Chinese five-year period.

Industries Targeted by APT41
Industries Targeted by APT41

At the same time, APT41 pursues its own goals, extracting financial benefits from attacks, which is unusual for other groups under the Chinese government, according to FireEye.

APT41 is known to include at least two people with the pseudonyms Chzan Xuiguan and Wolfji. The group probably has connections with other hacker organizations like BARIUM and Winnti.

FireEye also evaluated at what time of the day the APT41 attacked the gaming industry (its core target) and businesses from other areas. It turned out that this was happening outside the framework of a standard working day - probably these people, among other things, have the main job.

APT41 Operational Times
APT41 Operational Times

According to the UN Security Council, hackers under the DPRK government stole about $ 2 billion from banking institutions and cryptocurrency exchanges.