Coinbase CEO Brian Armstrong shares his views on QaudrigaCX

21 Feb, 2019 | Updated: 21 Feb, 2019
by Joeri Cant
Coinbase CEO Brian Armstrong shares his views on QaudrigaCX

In a series of tweets, the Coinbase CEO, Brian Armstrong, shared a summary of what they at Coinbase believe happened to the now failed Canadian cryptocurrency platform QuadrigaCX.

Armstrong kicks of by saying that they did their own internal research, including some blockchain analytics, to see if they could help in any way.

However, he is quick to point out that they are at best making guesses. 'Take it as *pure speculation*, nothing more', he said.

The Coinbase CEO comes to the conclusion that the QuadrigaCX debacle, most likely, won't be an exit scam.

'QCX was one of the oldest exchanges in existence (founded in 2013). If they planned an exit scam, it likely would have been timed better.'

Read more: Canadian crypto exchange QuadrigaCX goes offline, Reddit screams 'Exit Scam'

According to Armstrong QuadrigaCX suffered a multimillion dollar bug in June 2017, which is around the same time as when there is movement of funds into the cold storage and could suggest that the Canadian exchange tried keeping afloat, and maybe attempted to trade their way out of a hole.

We can assume that liquidity dried up and the bear market of 2018 caught up with them, Armstrong says, further pointing to the assumption that there was a sequence of events that suggests a mismanagement with a later attempt to cover it up.

Armstrong seems to believe that there were at least a few 'insiders' who knew that QuadrigaCX was spiraling down and thinks that it is entirely possible that the untimely death of QuadrigaCX CEO, Gerald Cotton, was used as an outlet to let the company sink.

Read more: The QuadrigaCX timeline: as it happened

Although Armstrong comes up with a story that seems very plausible, he says that these are their best guesses, based on the available data.

'As the case unfolds we might find out we were incorrect.'

The Twitter community in large parts seem to agree with Armstrong's guesses.

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QuadrigaCX = Exit scam

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