A company with legal problems; a mysterious death; Missing customer funds. The QuadrigaCX story could have come straight from the pen to a hack Hollywood writer. Well now, the internet's faithful crypto investigators claim to have found evidence of transactions initiated by the allegedly "lost" cold wallet. The Litecoin wallets, at least.
Let's start with a quick review
QuadrigaCX is Canada's largest crypto exchange, even though it has only filed for creditor protection, after months of transaction delays. Customers are naturally concerned about their funds, since all assets are temporarily frozen … allegedly.
Problems for the company started in January 201
December saw a number of promises from Quadriga that the money would come, after confirmation of Christmas Eve that they had received the funds … followed by several promises, when the announcement on January 14, 2019 that their CEO Gerald Cotten died in India December 9, 2018.
Please see our statement on the sudden passage of our @QuadrigaCoinEx @QuadrigaCoinEx ] founder and CEO, Gerry Cotten. A visionary leader who transformed the lives of those around him, he will be greatly missed. https://t.co/5rvGZ2BfLV
– QuadrigaCX (@QuadrigaCoinEx) January 14, 2019
Dead men keep private keys secret
Unfortunately, Quadriga and Cotts wife Jennifer Jenniferson explained the $ 250 Millions worth of cryptocurrency of customer funds stored in cold wallets are not recoverable as only her dead husband knew the private keys.
Of course, the tinfoil hat brigade did not believe this, and even suggested that Mr Cotten was, perhaps, not completely dead. It is alleged that he died of complications around Crohn's disease while working in orphanages.
Even Jesse Powell of Kraken asked the legitimacy of the story and offered to help the police with any inquiries.
Dead men do not move funds
When the internet is going to work, the internet is at work. Several sleuths posted "evidence" of discrepancies in the official line.
On Reddit, some claimed that they had found Quadriga's wallet addresses and that the funds were moved out. Commentators were eager to see this as evidence that death was merely a prelude to anyone pointing out that it was at least as likely that the person who had taken control of the keys would not share the funds.  A separate survey of the company's bitcoin team meant that there were no cold wallet reserves. It identified several discrepancies in the official story and said that QuadrigaCX did not appear to have lost control of its bitcoin teams.
The investigation also claimed to prove that Quadriga ran a fraction of the reserve. To which internet answered … Meh, probably. But some of your assumptions are questionable.
It is likely to be some time before we know for sure.
Do you think the CEO has not been sentenced to death? Share your thoughts below!
Pictures by the Law of Shutterstock