Coinbase CEO Brian Armstrong Reveals Summary on QuadrigaCX Exchange’s Peculiar Position
CEO and Co-Founder at Coinbase, Brian Armstrong has revealed in a series of tweets recently posted on Twitter, what he thinks regarding all the recent news surrounding QuadrigaCX.
While his opinions are not vindictive or conclusive in anyway, it sure is something to ponder on especially if you’ve been thinking about how such a fate befell one of the oldest exchanges in the cryptocurrency business.
Armstrong, who is also a co-founder at GiveCrypto – a non-profit charity aimed at giving cryptocurrency to the financially challenged – has said that he doesn’t believe that QuadrigaCX’s current position was a deliberately planned exit scam. According to one of the tweets,
“QCX was one of the oldest exchanges in existence (founded in 2013). If they planned an exit scam, it likely would have been timed better.”
Expressing that QCX had cold storages being handled manually, Armstrong said the way assets were moved around especially from some of these cold storages, gave the impression that the company actually did try to stay on the surface. He said
“Patterns of sends from cold storage suggest they tried keeping exchange afloat, and maybe attempted to trade their way out of a hole, (again just a guess here).”
Wanted to share a summary of what we believe happened to QuadrigaCX. We did our own internal research, including some blockchain analytics, to see if we could help. Important to note that this is just our best guess. Take it as *pure speculation*, nothing more.
— Brian Armstrong (@brian_armstrong) February 21, 2019
Throughout the Twitter thread, Brian Armstrong did his best to let readers know that the tweets were to be taken as conjecture. He said “Important to note that this is just our best guess. Take it as *pure speculation*, nothing more.”
Generally, the CEO thinks that the bear market that hit the crypto sector last year probably hit them harder than anyone thought it would. Suggesting mismanagement on the part of the organization, Brian implied that
“at least few people inside Quadriga knew that they were running fractional. If so, then it's possible that untimely death of their CEO was used as an outlet to let the company sink.”
Also, in response to people who think that the story of the death of Gerald Cotten – CEO of QCX – was used to hoard funds in the company, Brian says that there had been problems that prevented customers from removing their funds, long before Cotten’s death was reported. He said
“Gerald Cotten reportedly died in early December 2018. But complaints about withdrawal issues on Quadriga escalated in mid-2018.”
Conclusion of Mr Armstrong’s Thoughts
The last tweet of the thread seemed to express that even though his thoughts are speculations at best, they aren’t random and are established data made accessible through extensive research. The tweet read:
“While this story isn't perfect, it does seem plausible. I do want to emphasize that these are our best guesses based on the available data. As the case unfolds we might find out we were incorrect.”