Finally, the QuadrigaCX exchange mystery is solved. Experts traced the cold wallets and revealed that the money is gone. Millions of dollars have vanished after the death of the CEO of cryptocurrency exchange.
Gerald Cotten, The CEO of QuadrigaCX who is solely responsible for the private keys died due to Crohn disease back in December 2018. In January the exchange management team stated that $150 million in cryptocurrencies those are stored in cold wallets are not accessible.
Many rumours spread on the social media that Cotten faked his death and run away with the funds. Ernst & Young appointed by the court secured Cotten's laptop, home computer and USB keys. Using the public nature of the blockchain the research firm finds that the cold wallets are not active since April 2018.
"All the Bitcoins and other cryptocurrencies are transferred from the cold wallets."
QuadrigaCx accidentally sent approximatively $500000 CAD ($360000 USD) in Bitcoin (BTC) to the dead CEO Gerald Cotten cold wallet last month according to a report published by Ernst & Young on 12 Feb.
Users complaining about QuadrigaCX exchange that they never showed the financial records.
The report further explained that 14 accounts are internally created with alias names and withdraw the funds to wallets that are not connected to the exchange cold wallets.
The exchange has no money left to give back to the users and filed for creditor protection in late January. The Nova Court give the exchange a 45-days relief to investigate the case and recover funds.
Kraken, major cryptocurrency exchange started a bounty program of $100,000 for finding where the funds are stored.
Bitcoinik reported Ripple is added on OTC trading platform of Huobi. Jack Dorsey, the CEO of Twitter and Square payment company started a new trend "Stacking Sat Saturday".
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