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The QuadrigaCX fiasco continues to be a comedy of errors for observers, and a series of tragic mistakes for its unlucky customers and investors. The Canadian exchange reportedly has lost another $500,000 Canadian dollars by mistakenly transferring 100 Bitcoin’s to the late founder’s cold wallets.
The Supreme Court of Nova Scotia has appointed a monitor to assess the ongoing business of the exchange, who today published an initial report. Included in the report is the fact that ‘On February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately $468,675 to Quadriga cold wallets.’
EY's issued their 1st monitor report on @QuadrigaCoinEx: https://t.co/FUS74j9a8D
— Mags (@Crypto_Mags) February 12, 2019
Highlights ⬇️
An appalling reveal - #Quadriga sent 103 #Bitcoin's into the cold wallet they cannot access on Feb 6th 😬
EY is securing the remaining #cryptocurrency for safe keeping 🔐
1/ pic.twitter.com/RGkM3LrON9
QuadrigaCX does not have access to these wallets following the death of the founder (though the exact nature of this fact itself has been called into question), which caused Quadriga to lose access to the $190 Million USD worth of crypto it now owes to its customers- the exact reason the exchange applied for creditor protection to begin with.
The report reads as close to notable frustration as possible with a formal document comprised of legalese, going on to note that Quadriga’s remaining funds are to be transferred into a cold wallet the monitor has custody of. Furthermore, the monitor ‘has identified and secured various Quadriga electronic devices reportedly owned or used by [the late founder] Mr. Cotten within the Quadriga operation’ in order to attempt to retrieve the massive store of lost cryptocurrency.
While the report seems to support the official story of a massive debacle in which cryptocurrency became stuck following the exchange’s CEO dying in India, there is a developing theory that in fact the loss amounts to an elaborate exit scam, perhaps even including the founder, Gerald Cotten, faking his own death. Expert crypto commentators including James Edwards have explicitly denied this official account, and believe that QuadrigaCX is actively defrauding its customers and investors.
Let's just debunk Quadriga's claim via the Monitor that they 'mistakenly' transferred 103 bitcoins to their cold wallet.
— CryptoMedication (@ProofofResearch) February 12, 2019
Check the second picture - its clearly going to a mixer. They probably won't touch those funds for a while until you forget about it. pic.twitter.com/evC9srsFgn
Therefore, the recent revelation of QuadrigaCX losing yet another $500,000 worth of crypto into an inaccessible wallet amounts to either absolute incompetence and negligence, or a brazen attempt to further a huge conspiracy, depending on which version of events you believe. Either way, this story is far from over, and there are a considerable number of questions waiting to be answered.
Read more: Court documents show Quadriga founder's widow owns $7.5m in real estate