QuadrigaCX May Have Stored Missing $100 Million QuadrigaCX In Poloniex, Kraken And Bitfinex According To New Reports By ZeroNonCense

New York to probe Cryptocurrency Exchanges, with emphasis on Transparency

The QuadrigaCX saga has been on since December when the CEO of the exchange died with private keys to the company’s wallets that only he had access to. Since then, an investigation has been launched to determine the truth and recover the missing cryptocurrencies for the sake of the average investor. Unfortunately, there hasn’t been significant progress yet. New evidence, however, has shown that the exchange had accounts with other exchanges.

QuadrigaCX Had Accounts In Major Exchanges

According to a research report published by a consulting and research firm, ZeroNonCense, there was a significant amount of cryptocurrencies belonging to QuadrigaCX in cryptocurrency exchanges Bitfinex, Poloniex, and Kraken. The report, which was published on the 28th of February, was corroborated by the CEO of Kraken, Jesse Powell and the CEO of MyCrypto, Taylor Monahan.

The author of the report, claims that as much as 650,000 ETH units belonging to QuadrigaCX were stored in the exchanges mentioned above while it was active. This may account for the missing $100 million that the audit and monitoring team from Ernst & Young could not find. At the time the ETH was sent to the other exchanges, the author claims that they may have been equivalent to $100 million.

The widow of QuadrigaCX CEO, Jennifer Robertson swore an affidavit stating that she and no one in the exchange had any idea where Cotten stored the cryptocurrency assets or where he kept the private keys. So, ZeroNonCense suggests that it’s possible that they had no idea that Cotten stored these assets in cryptocurrency exchanges and didn’t know about his storage practices.

In the affidavit, Robertson said that it’s possible that her late husband stored some of the cryptocurrencies in other exchanges. Ernst & Young also claimed, in a report released last week, claimed that out of the six cold wallet storages the exchange presented as their own, only one had been used since April 2018. All the others were empty. So, there is a possibility that the new claims from ZeroNonCense about the assets being in different exchanges is accurate. It’s possible that these funds are still held in these exchanges. If this is true, retrieving them will be easy and QuadrigaCX will be able to resume operations.

The new report from ZeroNonCense is different from the firm’s previous report. Last month, the research firm claimed that the exchange did not have the $190 million in BTCs that it allegedly lost after the CEO died. ZeroNonCense wasn’t the only one with this view. Many prominent members in the cryptocurrency space including, the CEO of Kraken Jesse Powell, suspected foul play.

News outlets in Canada reported that banks within the country have been hesitant per the management of insolvent assets belonging to QuadrigaCX. This was due to possible money laundering issues. Some have suggested that everything, including the death of Cotten, is all part of an elaborate exit scam. Many users have already taken legal action against the exchange.

What do you think? Is this all part of an exit scam or will the funds be recovered in due time? Share your thoughts in the comment section.


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