Recent Report Reveals QuadrigaCX’s Stored ETH Funds

Girish Chugh

March 4, 2019 12:41 pm

Recent Report Reveals QuadrigaCX's Stored ETH Funds
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A recently published report by crypto research and consulting platform, ZeroNonCense, revealed that the crypto exchange, QuadrigaCX, stored a significant amount of ethereum (ETH) in other crypto exchanges. The claim was confirmed on obtaining corroborating details from Kraken CEO Jesse Powell and MyCrypto CEO Taylor Monahan.

The author of the report “believes that there is a very strong possibility” that almost 650,000 ETH belonging to QuadrigaCX were kept in the different crypto exchanges including Kraken, Bitfinex and Poloniex during QuadrigaCX’s ongoing operations.

Ethereum Funds Held in Various Crypto Exchanges

Following the sudden death of QuadrigaCX founder in February, Gerry Cotten, the crypto exchange was reportedly missing CA$190 million dollars ($145 million) in digital assets. According to ZeroNonCense’s explanation, given the affidavit the founder’s widow Jennifer Robertson, neither she nor the people associated with the exchange were aware of the assets stored by Cotten.

Robertson also mentioned in the Affidavit that Cotten might have stored some of QuadrigaCX’s funds on other exchanges, according to the report. Whereas, a report from Big Four audit company Ernst & Young claimed that the exchange’s cold wallets have been unused and empty since April 2018.

The report infers that if QuadrigaCX’s funds are stored on other exchanges, then their retrieval wouldn’t be a big deal and the platform will be able to get back on track again. Access to the stored funds would enable the exchange to reinstitute their operations, bringing them back in business.

However, in February, Canadian Banks expressed their hesitation as money laundering concerns loomed around the crypto exchange.

Read more about crypto exchanges here

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