Canadian cryptocurrency founder transferred customers' money to his own accounts: report

, draws into sharp focus several questionable business practices that preceded the shutdown in January of QuadrigaCX.Ernst and Young says CEO Gerald Cotten, who died while travelling in India last December, also transferred "significant volumes" of his customers' cryptocurrency into other exchanges, where it was used as security for margin trading.

The report confirms the Vancouver-based virtual company was "significantly flawed" when it came to financial reporting and operations, mainly because Cotten directed the entire enterprise on his own from his home in Fall River, N.S. As a result, Ernst and Young says the typical "segregation of duties and basic internal controls" did not appear to exist, there were no accounting records and no separation between the company's funds and customer funds.

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