QuadrigaCX Exchange’s Lost Crypto Funds of $150 Million Might Be Active Per Reddit Researcher


Some of the $150 million from the “lost” reserves of QuadrigaCX, Canada’s largest crypto exchange company, might be on the move. It was reported that Gerald Cotton, the CEO of the company who passed away, was the sole signatory and executor to the funds. Reports say QuadrigaCX forfeited over $190 million in crypto and fiat savings.

However, stakeholders in the industry are starting to raise their eyebrows because some of QuadrigaCX’s wallets have recorded recent activity.

Evidence Might Be Inadequate

A few people have expressed their uncertainty as to whether or not the wallets in question are really controlled by QuadrigaCX. A crypto user simply identified as “Palhello” on Reddit, has claimed to have studied most of the wallets that had any dealings with the company’s own wallet(s). Palhello also claimed that the investigation reveals that there was still some activity in the form of transactions, that took place after the company’s news was made public.

Palhello supposedly discovered about four wallets and says that these wallets have been run by QuadrigaCX at one point or the other and might still be run by the company.

According to the Reddit account,

“Any address that has input into the hot wallet are wallets that are fully in control of Quadriga (could also be an address that belongs to a Quadriga user whose private key belongs to Quadriga),”

Palhello also expressed doubt as to the story that the private keys were kept by the CEO alone because if this is true, it should be impossible for the wallets to carry out any kind of activity especially with regards to outbound trades.

According to the user,

“If these are really cold addresses there should be no outgoing transaction from them if the private key is lost. Regardless, the addresses posted are or at least used to be controlled by Quadriga.”

It is important to note that there always is the possibility that the wallets are not directly under the control of the company. They could have been owned and controlled by major clients of Quadriga.

The case is still under investigation and until the police are done, no one can say for sure who owned what.

Stakeholders’ Doubts

A few stakeholders in the industry have also expressed their doubts about the whole situation. Jesse Powell who is the CEO of Kraken which is one of the largest cryptocurrency exchange companies in the United States and Canada has been vocal about the situation and does not believe Quadriga’s CEO is dead. He said:

“We have thousands of wallet addresses known to belong to QuadrigaCX and are investigating the bizarre and, frankly, unbelievable story of the founder’s death and lost keys. I’m not normally calling for subpoenas but if the Royal Canadian Mounted Police are looking into this, contact Kraken.”

Another person who has decided to sit on the fence for a bit is Bitcoin expert and major crypto consultant, Peter Todd. Todd hopes that the general public will ponder on all possible scenarios in question.

According to Todd,

“The people trying to pull off a QuadrigaCX exit scam could actually be the family and other employees, by hiding the fact that the cold wallet keys are known. Not saying this is happening, but need to consider all possibilities fairly in the investigation.”

There’s the chance, however slim, that Quadriga’s own wallets are still inactive and its wallets that are connected to it, however closely or remotely, that have activity. Regardless of what side of the fence most people are on, many experts still agree that the timing of the activity is very suspicious.

Some experts have also said that the current problems the company is facing should have been anticipated and stopped if the company employed a multi-signature system which allows more than one individual to hold a private key.

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