According to on-chain sleuth ZachXBT, five wallets linked to defunct Canadian exchange QuadrigaCX accidentally moved 104 bitcoin (Dec. 17, f...

Transfer Bitcoin bound to QuadrigaCX from cold wallet



According to on-chain sleuth ZachXBT, five wallets linked to defunct Canadian exchange QuadrigaCX accidentally moved 104 bitcoin (Dec. 17, for the first time in years.

In early 2019, the exchange’s court-appointed supervisor, Ernst & Young (EY), revealed that 103 BTC had been mistakenly sent to inaccessible cold wallets.

In particular, EY is not responsible for the transfer of funds. According to Coindesk, bankruptcy inspectors are currently working to gather more information on the recently transferred tokens.

QuadrigaCX is a Canadian cryptocurrency exchange and the largest in the country. It started operations in 2013 and offers trading of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc.

In December 2018, QuadrigaCX abruptly closed its doors due to sudden operational complications following the unexpected death of its founder and CEO, Gerald Cotten. Word soon surfaced that nearly $200 million belonging to clients had disappeared. Apparently, Cotten retains control of all user funds outside of the company’s trading platform to protect them from hackers or other potential bad actors.

When he died suddenly of Crohn's disease while on his honeymoon in India, the keys to the accounts went missing with him. When officers searched Cotton's computers, they found that he mismanaged client funds, transferring large sums of money to personal accounts instead of keeping them in cold storage wallets as per company procedures. As a result, it was revealed that as of 2019, only about $26 million CAD was left in QuadrigaCX wallets, far less than the amount initially deposited by customers, leaving the exchange insolvent.

The failed exchange filed for protected bankruptcy protection shortly after closing. Quadriga CX investigations recovered only a fraction of the amount.