HomeBitcoinQuadrigaCX an exit scam, or just unfortunate events?

QuadrigaCX an exit scam, or just unfortunate events?

QuadrigaCX

QuadrigaCX reportedly lost its CEO recently, resulting in the disappearance of millions of dollars in funds. Additional alleged information shows the public’s skepticism toward the situation.

QuadrigaCX CEO dies

According to a February 4 article from Bloomberg, 30-year-old QuadrigaCX CEO Gerald Cotten died from Crohn’s disease on December 9, while in India.

Reportedly due to the unfortunate event, roughly $145 million USD worth of customers’ crypto assets now sits locked on QuadrigaCX’ crypto exchange, inaccessible to the rest of the team.

According to Bloomberg’s article, with information from an affidavit from Cotten’s wife Jennifer Robertson, the CEO took particular caution to secure and encrypt important information and passwords, and was the primary lead on dealing with and securing funds.

Robertson reportedly has tried to access the files, funds and records, but to no avail, according to court filings mentioned in Bloomberg’s report.

Boxmining’s take

Notable crypto influencer and YouTuber Boxmining recently posted a video on the subject, noticing some of the lost assets allegedly have moved.

According to Boxmining,

Users are now chasing down where the cold storage wallets are – what the exact addresses are, and it turns out that one of these addresses has litecoin moved. So, that shouldn’t be possible if they lost complete access to the keys of the exchange. If this story is credible and true, then they can’t move this litecoin.”

Further information does not seem to add up. Boxmining referenced an article from Crypto.IQ on the topic of Cotten’s death details.

Crypto.IQ noted,

A death certificate was attached to the court document [QuadrigaCX’ court document], but it is not an official death certificate. It is a statement of death from a funeral home. QuadrigaCX users called the funeral home and did not receive an answer. The funeral home’s database did not have a record of Cotten’s death.”

The article also detailed Cotten allegedly was dealing with a legal battle with the Canadian Imperial Bank of Commerce (CIBC) when his death occurred.

Additionally, the article mentioned Cotten completed his will just two weeks prior to his death, leaving some of his funds and property to his dogs and wife.

Sensitive to Cotten’s death, as well as the situation, Boxmining stated in his video, “it’s a bit insensitive to be going into [investigating] someone who could potentially be dead, but at the same time, losing $149 million of other people’s funds leads to the question, you know, is this an exit scam?”

Boxmining also noted Cotten’s recent marriage, which Boxmining stated occurred just a month before Cotten’s death.

 

Written by

BJ is a full time writer, editor, and trader in the cryptocurrency space. He has written many professional articles for numerous ICOs, news sites, and other interested parties in the crypto space. He is also a trader, staying up to date with the crypto markets constantly, and dabbling in traditional financial market trading occasionally.

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