Home / Blockchain News / CEO of Canadian Crypto Exchange QuadrigaCX Filed Will 12 Days Before Death

CEO of Canadian Crypto Exchange QuadrigaCX Filed Will 12 Days Before Death

The $145 million in digital assets that are supposedly stuck in encoded cold wallet storage of QuadrigaCX crypto trade could really be absent, according to analysts cited by the Wall Street Journal (WSJ) on Feb. 6.

In December 2018, the founder of real Canadian cryptocurrency trade QuadrigaCX, Gerald Cotten, passed all of a sudden. Cotten was purportedly the sole executive with access to the exchange cold wallets. In that capacity, customers have been unable to withdraw funds owed to them, and the exchange has sought creditor protection in the Canadian court.

A filing from Ernst and Young states, “Quadriga was unable to access the cold wallets and/or discovered that the cold wallets contained minimal cryptocurrency units.” ‘Big Four’ reviewing firm Ernst and Young was appointed a free independent to screen the creditor protection proceedings.

Users of the platform have grown suspicious of the circumstances surrounding Cotten’s death, with some asking for an obituary or proof of death. Recently Bloomberg announced that Cotten filed a will 12 days before his death. Cotten purportedly marked his last will and confirmation in November 2018, assigning his wife as the only beneficiary and the executor of his estate.

James Edwards, a cryptocurrency analyst who publishes research on a Zerononcense,  allegedly explored the publically available exchanges of the trade and found no proof that the trade controlled any of the wallets. “It appears that there are no identifiable cold wallet reserves for QuadrigaCX,” he purportedly wrote in a report.

As indicated by Edwards, there is proof to suggest that wallets with their skepticism regarding the exchange’s financial woes. At present, the biggest wallet is evidently a hot wallet, which is used for transactional purposes.

Other experts and execs in the crypto sphere have express their skepticism regarding the exchange’s financial woes. Elementus Group CEO Max Galka said it was “extremely likely that there aren’t any cold wallets.”

The CEO of cryptocurrency exchange Kraken, Jesse Powell, tweeted on Feb. 2 that the story was  “bizarre and, frankly, unbelievable. Powell even suggested that the Royal Canadian Mounted Police contact his exchange as it has “thousands of wallet addresses known to belong to QuadrigaCX” that Kraken is examining.  

Prior today, the British Columbia Securities Commission (BCSC) disclosed to Reuters that QuadrigaCX does not fall under the commission’s regulatory domain. The exchange was unregulated as there was apparently no sign that it exchanged securities or operated as an exchange.

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