Remember that the Canadian exchange QuadrigaCX founder Gerald Cotton suddenly "dead", causing millions of cryptocurrencies to evaporate and lose more than a hundred million dollars in events?
Recently, this news broke the big news. Before the founder died, he did a lot of money transfer without the user's knowledge. And often use private jets and appear in resorts.
In response to this matter, the court issued a 70-page report to eat the people together to see what happened.
- Ernst & Young shocked QuadrigaCX insider: The late CEO opened a fake account and misappropriated client funds for margin trading
Canada's largest cryptocurrency exchange, QuadrigaCX, is a rising star in the world of cryptocurrencies, once the world's fastest-growing cryptocurrency exchange.
But it didn't last long. In January 2019, the industry suddenly broke the news that QuadrigaCX founder Gerald Cotton died of illness in December 2018.
It is a pity that at the same time, a problem is also placed in front of all investors, that is, the key of the exchange wallet is only known to Gerald Cotton. When Cotton died, all the cryptocurrencies were locked, all investors The funds will not be returned . According to incomplete statistics, the number of victims is as high as 76,000, involving losses of up to $163 million.
The reason why the founder passed away and could not withdraw the reason did not convince the investors. The doubts also caused the incident to fall into the Rashomon, so that some people called it the Canadian version of the Mentougou incident . Fortunately, the investigations of relevant departments have had new results.
According to reports, the founder of the QuadrigaCX exchange transferred the exchange's funds without the user's knowledge before being reported dead last year.
As reported by The Wall Street Journal and the well-known blockchain media CoinDesk, the court issued a 70-page report for investigators designated by the QuadrigaCX exchange, which detailed the financial status of the exchange.
According to the report, Gerald Cotten , the founder of the QuadrigaCX exchange, transferred “huge amounts of property” to his personal account on a competitor's exchange, apparently using the funds to buy luxury goods and real estate .
There are only a few statements left on the official website of the QuadrigaCX exchange.
The official website of the QuadrigaCX exchange was shut down at the beginning of this year, and the glimmer of hope in the hearts of investors was also shattered.
Investigators said the QuadrigaCX exchange owed a total of about 760 million Canadian dollars (about $163 million) in funds, but the investigators only recovered about $33 million .
In a previous interview, Cotten's wife said that most of the exchange's funds were locked in a cold wallet, and the key to the cold wallet was only known to Cotton. But the latest report shows that "there is not a lot of cryptocurrencies locked in the cold wallet. Instead, most of the cryptocurrency is transferred to the personal account name that Cotton has opened on the competitor's exchange. "
The investigators recovered some cryptocurrencies for the QuadrigaCX exchange, but other cryptocurrencies were apparently transferred to personal accounts controlled by Cotten.
Quadrigacx's main "hot" cluster wallet address
According to incomplete statistics, Cotten has realized about $80 million over the past three years, and investigators are unable to explain the origin of these funds . Conspirators argued that Cotton had contributed to the scam by falsifying death, but the report did not answer this question positively. The report focused on the financial misconduct of the QuadrigaCX exchange.
According to the investigator's report, the QuadrigaCX exchange does not appear to have much business records, and its internal communications are spread across multiple devices and accounts, making it inconvenient to track.
“There is no evidence to prove that the QuadrigaCX Exchange has retained accounting records since 2016.” That is to say, founder Cotten transferred a large amount of money with little supervision, while investigators found Cotten and his His wife has bought a lot of “liquid assets and real estate” in the past few years. They often go to vacation spots and often use private jet services .
At present, the judiciary still cannot give an exact conclusion, but the plot really makes the battalion commander say that the melon is not enough.
When "people" becomes the biggest bug in the system, whether it is really dead or stalked by evil thoughts, it is a devastating disaster for investors.
Source | TheVerge
Compilation | Guoxi
Editor | Aholiab
Produced | Blockchain Base Camp (blockchain_camp)