$1 million worth of ETH left QuadrigaCX in same month as founder died

08 Feb, 2019 | Updated: 08 Feb, 2019
by Joeri Cant
Exchange
$1 million worth of ETH left QuadrigaCX in same month as founder died

In a series of transactions sent from the Canadian cryptocurrency exchange QuadrigaCX, more than 9,000 ETH was sent to accounts at Binance, Bitfinex, Kraken and Poloniex, and this during a short period of a few days before QuadrigaCX founder and CEO Gerald Cotten, reportedly died in India.

According to a CoinDesk review of public blockchain data, nearly $1 million worth of ETH left QuadrigaCX in the same month as its founder and CEO died.

5,000 ETH was transferred out of QuadrigaCX from Dec. 2 to Dec. 8, the day before the recorded death in India of the QuadrigaCX founder.

Further according to the review, it was discovered that most of the ether sent that week ended up at Binance.

Read more: QuadrigaCX saga is ‘very bad’ for Canadian crypto says CEO Coinsquare

Due to the exchange’s growing troubles, the crypto community started to take a closer look at the flow of funds, however, it is unclear if these transactions were initiated by the exchange itself, or by its customers.

One explanation could be that the large December transfers was sent by QuadrigaCX itself, as it needed to convert crypto to fiat to fund its operations.

Taylor Monahan, founder and CEO of the wallet startup MyCrypto, said that all exchanges at one point need cash.

'Whether that is server bills or contractors, at some point you need cash', he said.

'If you have a strained relationship with your banking partners, you may choose to obtain fiat via another mechanism. So it wouldn’t surprise me if an exchange used an OTC desk or another exchange in the space in order to move ETH or BTC into fiat and ultimately pay bills.'

However, both Binance and Poloniex weren’t dealing with fiat money at the time of these transactions, so these transfers wouldn't explain the need for cash to pay the bills.

None of the exchanges who were on the receiving end of these possible suspicious transactions, have responded to this recent news.

Read more: QuadrigaCX: will we see an "international manhunt" if CEO is alive?

Many can't shake the feeling that Gerard Cotten is still alive. The attorney Jake Chervinsky is also one of the many people who suspect that Cotten may still be alive, and predicts a huge search operation led by asset recovery lawyers if this indeed turns out to be true.

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Add a comment

And poloniex is here of course, in the list of suspicious exchanges. That's normal.
12 Feb, 2019 - 09:09
nothing new lol :D poloniex appears on all the shitlists
15 Feb, 2019 - 10:53
Nice explanation about poloniex. Binance - fine. But poloniex is mixed in so many scam stories that seeing them with quadriga is not surprising.
19 Feb, 2019 - 10:02
I'm so tired of the unfounded rumors about Bitfinex. like dirt likes to smudge something clean and transparent.
21 Feb, 2019 - 01:29
there is no real connection between Quadriga case and bitfinex. two totally different exchanges and the latter one is much safer as we can see now
27 Feb, 2019 - 10:46
there is no connection, actually as usual haters do their job and connect all bad news to bitfinex.
27 Feb, 2019 - 13:21
where did haters found this difference I wonder..
28 Feb, 2019 - 08:13
i am not surprised to see bitfinex in the list of exchanges that could have been receiving these funds. this is definitely very reliable place and smart persons understand that it is better to keep their assets there
20 Mar, 2019 - 12:10

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