Controversy with QuadrigaCX Exchange Continues as 5 Bitcoin Cold Wallet Addresses Linked to Platform

It seems that blockchain researchers were able to identify 5 Bitcoin (BTC) addresses related to the crypto exchange QuadrigaCX. This is very important since exchange officials claimed that they were not able to have access to these wallets. Earlier in January, the exchange confirmed that they lost around $150 million in funds that belonged to customers.

This happened due to the fact that the CEO of the platform, Gerald Cotten, died during a trip to India. According to the platform, Cotten was the only one responsible for moving funds from the exchange’s hot wallets to cold storage devices. The exchange did not provide the information regarding the wallets that they were using as cold storage

As recently reported by CoinDesk, Ernst & Young (EY), the court-appointed monitor in the creditor protection case. The company showed that Quadriga transferred 103 BTC to “cold wallets” that the company did not have access to.

There are some addresses that received small transfers equal to 104.335 Bitcoin. The Redditor Decoze provided information regarding these wallets.

A breakdown of QCX BTC movements (what we know and don't know). Part 1. from QuadrigaCX2

One of the addresses (1HyYMMCdCcHnfjwMW2jE4cv9qVkVDFUzVa) received in the past a small amount of Bitcoin from one of the QuadrigaCX’s hot wallets which the owner of the exchange mentioned in a court affidavit. Furthermore, these addresses seem to belong to the same entity according to the blockchain analysis sites Walletexplorer and OXT.

According to Laurent, a developer at OXT, blockchain analysis cannot produce exhaustive and unambiguous conclusions. It is not an easy task to analyse the blockchain and be able to identify specific users. This is why the community should be cautious regarding these findings.

Decoze explained that in 2017, two of the addresses sent transactions to the address 1PdBMFkicx1vTHs9P6whPGondSVcmndVha that belongs to the popular cryptocurrency exchange Bitfinex.

During a conversation with CoinDesk, Laurent commented about it:

“My main theory is that it might be a wallet controlled by QCX and used as a kind of ‘pivot wallet’ between QaudrigaCX hot wallet and several exchanges. Large financial flows (in/out) can be observed between this wallet and exchanges like Bitfinex.”

The QuadrigaCX exchange controversy reached mainstream media during the last weeks. Clearly, users are now waiting for a solution and receive their funds back in some way. The exchange is currently trying to find a legal way to solve this situation.

It has less than 30 days to find the funds and recover the access to the accounts lost.

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