Quadriga founder was margin trading $80M and getting liquidated in latest report

20 Jun, 2019
Quadriga founder was margin trading $80M and getting liquidated in latest report

Following the shut down of Canadian cryptocurrency exchange Quadriga after the founder passed away in India, the government of Nova Scotia have released the Fifth report of the monitor which covers the recent findings of the exchange.

The recent report sets out to "provide the Court and stakeholders with an interim report on the Monitor’s investigations into the business and affairs of the Applicants and its previous sole director Gerald Cotton."

Following the liquidation of the exchange, relevant parties have stepped in to try and make sense of the situation. The recent report covers several points in the investigation including recoveries to date, books and records, blockchain analysis, Gerald Cotton platform activities and next steps.

Reading through the 70 page report, Evan Thomas, a commercial litigator with an interest in crypto according to his Twitter bio, commented on the recent report giving insight into what the Fifth report has uncovered so far.

Some of the biggest news mentioned in the report include Quadriga Founder Gerald Cotton setting up fake accounts that he funded with non-existent funds to buy real crypto that was then moved off of Quadriga. Thee funds were moved to other cryptocurrency exchanges, where Cotton reportedly traded the funds using margin trading, where none of these funds can be located now.

The report also explains that significant amounts of cryptocurrency were withdrawn from the exchange over several years, and with Quadriga not having any internal controls or account systems in place, the numbers appear to be all over the place in terms of withdrawals.

It also appears that Cotton sent 21,501 BTC to an unnamed exchange where all by 8 BTC was liquidated, equivalent to $80 million over three years.

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Read more about: QuadrigaCX

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