Expert crypto analyst: QuadrigaCX funds missing, not stuck

08 Feb, 2019 | Updated: 08 Feb, 2019
by Will Heasman
Expert crypto analyst: QuadrigaCX funds missing, not stuck

Following multiple (and often strange) twists and turns of the QaudrigaCX debacle, analysts now believe that the funds may be missing, rather than simply ‘stuck’ as per the 'official' explanation.

The details of this story have become wilder and wilder as the days go by, accusations ranging from incompetence to an elaborate exit scam, and allegations of a faked death.

Through it, all the exchange team has stuck by its story of the sudden death of its founder and the subsequent exclusion of nearly $200 million in cryptocurrency.

However, according to the Wall Street Journal, an expert cryptoanalyst, named James Edwards, found the exchange didn’t appear to have access any of the wallets it claimed ownership to.

Read more: The QuadrigaCX timeline: as it happened

After inspection of the exchange's transactions Edwards wrote that the exchange held no such reserves:

“It appears that there are no identifiable cold wallet reserves for QuadrigaCX.”

Edwards continues to relay that evidence suggests wallets with a large balance exited once upon a time, but that they currently hold much less, suggesting that crypto reserves were removed either before or after the death of Quadriga CEO Gerry Cotton. 

Cold wallet reserves: lacking in funds or non-existent

Ernst and Young, the official monitor in the court hearing for creditor protection, commented upon the cold wallet reserves during case filing, stating:  “Quadriga was unable to access the cold wallets and/or discovered that the cold wallets contained minimal cryptocurrency units.”

The idea has been echoed by others, such as the pseudonymous crypto investigator, ProofOfReaserch, who, after an in-depth study of the Quadriga wallets, offered the conclusion that the exchange never actually had any cold wallet reserves. 

this adds to the mounting proof that Quadriga has, in fact, defrauded its customers, whether or not this includes faking the death of its CEO is still very much a matter for debate.

Read more: Indian hospital describes death of QuadrigaCX CEO Gerald CottonQuadrigaCX CEO filed a will 12 days before his deathBritish Columbia Securities Commission says it doesn't regulate QuadrigaCX

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Read more about: Bitcoin (BTC) Scam


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