QuadrigaCX mystery deepens after cryptocurrency cold wallets found empty

QuadrigaCX mystery deepens after cryptocurrency cold wallets found empty


Following weeks of speculation, QuadrigaCX’s court-appointed auditor has finally revealed the addresses for the struggling cryptocurrency exchange’s offline Bitcoin wallets.

According to EY, which published its third report into the investigation on Friday, the cold storage wallets are empty – aside from a transfer of $400,000 worth in Bitcoin which was inadvertently sent last month – meaning $100 million in user funds continues to be unaccounted for.

The news comes after the exchange said in January that it owed customers approximately $134 million worth of cryptocurrency.

At the time, the exchange noted it had lost access to the funds as a result of its founder Gerald Cotten’s sudden passing, claiming the majority of the holdings were kept offline, in cold storage, and only Cotten knew the private keys to the accounts.

A crash course in QuadrigaCX

QuadrigaCX was one of Canada’s biggest cryptocurrency exchanges.

It made headlines all over the globe after the reported sudden death of its founder resulted in the loss of $134 million of users’ funds.

Cotten’s death followed on from months of complaints about banking issues, with some of the platform’s customers describing problems with fiat and crypto withdrawals.

Bearing in mind other cryptocurrency scandals such as Mt. Gox, Cotten’s passing exacerbated concerns about the exchange‘s solvency or potential wrongdoing. Read more






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