New Crypto Rumors Arise Around Troubled QuadrigaCX Exchange’s $150 Million Missing Funds

We have heard what happened with the cryptocurrency exchange QuadrigaCX and all the implications that it has for the virtual currency market. The owner of the crypto exchange, Gerald Cotten, died a few weeks ago without leaving information about the private keys related to the cold storage wallet in which the exchange held most of the digital currencies of its clients.

However, Bloomberg recently released an article in which they inform that Mr. Cotten changed his will just twelve days before his death on December 9. This is one of the many elements that are raising concerns about the $150 million lost in digital currencies.

One of the first rumors is that the co-founder of the platform, Michael Patryn, might be convicted identity thief Omar Dhanani. According to CCN, suspicions circulated regarding the co-founder of the platform. Apparently, he could be the member of a convicted scammer, Omar Dhanani, who was a member of the Shadowcrew. Apparently, the group has been involved in identity fraud back in 2005.

As reported by Stephen Palley, a recognized lawyer, he hinted that Omar Dhanini is really Micahel Patryn. Mr. Dhanani used the name Omar Patryn in 2005 as well.

Having a thief in the top positions of a company that handles millions of dollars for users is something that we should pay close attention to. Although QuadrigaCX explained that Michael Patryn left the company years ago, this does not help the company solve the problems it has with the private keys lost.

The company has also experienced different banking problems in the past. In October, the Canadian Imperial Bank of Commerce (CIBC) decided to freeze $22 million that the exchange had in the bank. After this situation, the bank had some issues with QuadrigaCX and several bank wires were recalled.

In order to better understand what to do with the funds that QuadrigaCX had in the bank, the financial institution decided to seek help from the court and determine which was the best course of action.

Another issue that affected QuadrigaCX’s credibility is whether the exchange really had $150 million in digital assets at the time of its closure. Although blockchain analysts have presented inconclusive reports regarding the funds that the company had, there is no evidence that the exchange was solvent.

According to Taylor Monahan, the founder of MyCrypto, says that there is no indication of QuadrigaCX ever having a cold/reserve wallets for Ethereum (ETH). Additionally, several of the funds they had have been moved across different exchanges such as Poloniex or Bitfinex.

The cryptocurrency exchange has also remained in silence after the death of the CEO and founder of the platform. Mr. Cotten passed away back on December 9 in India. In a death certificate that was circulating on the internet, it is possible to see that the name is even spelled wrong, thus adding more irregular things to this situation.

Finally, the crypto executive altered his will less than 2 weeks before his death. In general, it is logic to keep the will update before a person makes a long trip. This is to ensure that loved ones can have access to documents and other important information after the person passes away.

Additionally, the laptop that Cotten left has been difficult to get into. This makes the situation even more complicated in order to have access to the funds that the company says it had. However, how is that possible that the LinkedIn profile is no longer active?

Cryptocurrency exchanges will have to be compliant with current laws and regulations on how to deal with users digital assets. The example that we have with Cotten shows that it is more than important to be compliant at the time of dealing with virtual currencies.


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