Anonymous ID: 7871d6 March 28, 2019, 9:17 p.m. No.5957452   🗄️.is 🔗kun

The Story Behind Quadriga's Collapse Just Got Even Weirder

 

Since QuadrigaCX first started having "liquidity issues" late last year, aggrieved clients of the crypto-exchange have been subjected to one wild twist after another, all of which have supported the conclusion that the roughly $150 million in customer deposits (estimates of the total sum vary) has mysteriously vanished, and will likely never be recovered.

 

In January, the exchange revealed that its co-founder and CEO, Gerald Cotten, had died suddenly from complications related to Crohn's disease during a vacation in India. Cotten was responsible for the exchange's day-to-day operations, and in a bankruptcy filing, his widow claimed that he had taken the keys to the exchange's 'cold storage' wallets to his grave. Efforts to infiltrate the wallets proved futile, and according to the exchange, it appeared that customers' coins would be trapped forever.

 

But as amateur sleuths and the auditing firm retained by the exchange dug deeper, inconsistencies began to emerge. The exchange refused to reveal the public addresses of these wallets. And when the auditors finally got them, they found that six wallets that were supposed to hold nearly $100 million in coins had been emptied months before Cotten's death.

 

Weeks later, Bloomberg reported that a co-founder of the exchange who eventually quit had once been jailed for fraud.

 

All of this came as a shock to the exchange's clients. At one point, Quadriga had been the largest crypto exchange in Canada. And according to a regulatory attorney who had been retained by the firm during its early days, at one time, Cotten had been on the path to building the most transparent and secure exchange in Canada, if not the world. Quadriga had four law firms advising it. It hired an auditor, and even secured insurance for its cold-storage deposits.

 

Then one day, he suddenly broke bad, fired all the outside advisors and auditors, and decided to go it alone, according to Christine Duhaime, a lawyer who had been working with the firm. Duhaime shared her experience with Quadriga during a lengthy essay published earlier this week on CoinDesk.

rest at link

https://www.zerohedge.com/news/2019-03-28/story-behind-quadrigas-collapse-just-got-even-weirder

 

"I'll take Mt. Gox for $1000 Alex…and make it a daily double if you please"

All it took was researching that issue for 10 minutes to know this was going to habben.