Back in 2018, some people were having issues withdrawing money from QuadrigaCX, a large Canadian crypto exchange. It kept coming back from QuadrigaCX that banks were freezing funds, and they were just having problems in general trying to move large amounts of money around in Canada without regulatory approval.
Back in December 8th, the founder and CEO of the exchange Gerald Cotten died in India. Now the exchange is floundering, as Cotten was apparently the only person with the cold storage wallet keys to the $190 million in funds the exchange held.
And we all know what that means – if you don’t have the keys, you don’t get the money.
What’s suspicious about that – it seems like a legit problem?
Yes, there’s no doubt about it, that is a problem. The suspicious parts started 2 weeks before the December 8th death.
Cotten updated his will. Fair enough, before traveling to a foreign country, it’s common to make sure your will is in order. However, the detailed will included everything from which family members would get his multiple properties, down to money left behind for his pet chihuahuas. Again, nothing strange in that itself, except that if he went to this level of detail in his planning, why wouldn’t he have done something with the private keys to $190 million also?
To add further confusion to the pile, on Reddit there are long threads of people searching for the cold wallets. So far, there is no verifiable proof that there are even wallets that belong to QuadrigaCX out there with that amount of crypto in them.
Teeka Tiwari has some interesting points
In the February 15th edition of the Palm Beach Daily, Teeka talks about the QuadrigaCX issue, and reminds everyone to hold their own crypto in their own wallets – and never leave them on an exchange.
Teeka also points out 2 interesting things that make Cotten’s death look “like an exit scam”
- He died in a part of India notorious for issuing fake death certificates. You can get them from doctors in the area for about $300.
- On top of that, someone moved over $1 million worth of coins from the exchange the week before Cotten died… So it looks like someone knew something was happening.
If you had funds on QuadrigaCX, I’m sorry. The company is currently in creditor protection, but there will be bankruptcy proceedings and there’s a chance you could recover some of your funds.
Also, there is hope that Cotten’s laptop could be cracked and private keys may be found – that’s if there is any money in any cold wallet storage at all.