QuadrigaCX, a Canadian-based crypto exchange, has been inactive for several years. However, five crypto wallets linked to the exchange firm have become active recently.
QuadrigaCX Linked Wallets Become Active
In 2018, the founder of QuadrigaCX, Gerald Cotten, reportedly passed away amid reports of a huge crypto scam. After his death, many believed the wallets linked to the crypto exchange were inaccessible.
This is because only Cotten had the private keys to the wallets. On December 19th, ZachXBT, a crypto researcher, tweeted that the five wallets linked with the platform became active on December 17th and sent 104 BTC to different wallets.
Blockchain restaurant revealed that the last time these wallets were active was in April 2018. Following Cotten’s death in 2018, the crypto filed a bankruptcy application in April 2019.
QuadrigaCX, the largest crypto firm in Canada, shook headlines for over two years as users’ funds went missing. At the time, QuadrigaCX owed over 155,000 members crypto worth about $200 million.
In February 2019, Ernst & Young published a report. They alleged that one of the accounting firms that managed QuadrigaCX’s estate moved about 103 Bitcoin to cold wallets on February 6th, 2019.
Unfortunately, only Cotten can access the wallets to which the accounting firm sent the funds. Additionally, the amount moved at the time is similar to the recently moved.
Conspiracy Theories Allege That Cotten’s Death Is Fake
After filing for bankruptcy, the exchange assured users that it would ensure users get their funds. First, they had to access the cold wallets and remove the Bitcoin. Unfortunately, nothing has happened since that announcement.
Meanwhile, several conspiracy theories allege that the QuadrigaCX founder faked his death. The reports alleged that it was his way of exiting the illegal scheme without legal troubles.
Moreover, the story even starred in a Netflix documentary this year titled “Trust No One: The Hunt for the Crypto King.” Earlier in 2014, before Cotten died, he stated that the best way to maintain private keys was to print them and store them offline.
Hence, the founder might have kept the private keys in the company’s deposit box in a bank. Also, the recovery attempts of Ernst & Young could be responsible for the latest BTC transfers.
If that is the case, how did they come across the key if the owner is dead? The crypto community is still skeptical about the whole situation and urges experts to dig deep. Users of the exchange may finally have a chance to regain their funds.
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