QuadrigaCX Debacle Continues: £100m Believed To Be Found While EY Discover Empty Wallets & Alias Accounts

QuadrigaCX Debacle Continues: £100m Believed To Be Found While EY Discover Empty Wallets & Alias Accounts

$100 million worth of QuadrigaCX lost 180 million found as saga into lost coins continues, but the plot thickens as EY uncover empty wallets.

In one of the biggest stories of late, there may new hope for QuadrigaCX customers who lost millions when founder Gerald Cotton died unexpectedly. Previously we reported that Big Four firm, EY, had taken over the account. Then last week issues surrounding money laundering rose to the forefront of the discussion. However, there may be some new hope for their thousands of customers as $100 million of the lost funds may have been found. Great news, right? Well, not quite.

Researcher Believers $100 Million Stored At Other Exchanges

Apparently, this significant amount of funds had been stored by Cotton at numerous different other exchange platforms before his death. According to a report by a crypto researcher, “Altogether, a cumulative 649,708 Ethereum was sent to Kraken, Bitfinex, and Poloniex directly by QuadrigaCX, which was worth a total of $100,490,150 at the time of transfer”.

If this intel is true, this could explain to some extent where a vast amount of the funds has gone, but still leaves millions remains lost somewhere in cyberspace. However, this is where QuadrigaCX auditor, EY comes in as they have also revealed another element to the story.

Cold and Empty Wallets Found

 In a report they revealed, significant amounts were also transferred crypto wallet before his death, unbeknownst to the rest of the organisation, according to a report by EY.

The report states that at least 6 of these wallets that were believed to have been used were empty and 5 of them had not been used for nearly a year. According to QuadrigaCX, there is no explanation for why this would have happened. As well as this, a further 14 different user accounts were created in an unorthodox fashion with various different alias’ behind them. This report states that the accounts do not have “corresponding customers” with them believed to have “been artificially created and subsequently used for trading on the Quadriga platform.” As such, this leads a trail of breadcrumbs to some very bizarre behaviour.

Smaller pieces of the money have been recovered bit by bit, with EY having reached out to 14 different exchange platforms in an attempt to further shed some light on the situation. So far, 4 of the platform responded to the request but unfortunately, only one responded who were only holding a small sum of the missing funds. These are now in the auditor’s possession. Could it be possible that the other 10 hold the key to the missing funds?

What’s Next?

In total, EY has managed to recover $24.7million in cash from several bank drafts, with a significant sum coming from a third party, known as Costodian Inc. With a further 5 million in other bank drafts, but can only be got to if a corporate entity will take responsibility for this procedure. While a mere $5000 was found with Quadriga’s payment processors. Meanwhile, Kraken Exchange has offered a 1000k reward for the missing coins.

In total, there is still around 26K Bitcoin lost. As such this could be explained away if the cyber researcher’s report is true. However, this is certainly a very unique case with many twists and turns, so don’t expect this story to be over soon.

Register for Latest Updates & News

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

1xBit Guide: Crypto Sportsbook & Casino

The casino and sportsbook industry continues to witness an increase in the number of platforms within the space. This creates a challenge of identifying the best and most reliable sportsbooks that will offer you the most impressive services. In this guide, 1xBit shall be reviewed in terms of its service offerings and unique features that […]

11 January, 2022

XBE Community Launches a $500k Bug Bounty

Decentralized technology is built to attract the smartest and brightest brains from all over the world to work towards a common goal: free and fair financial systems. Despite the uncertainties surrounding future laws, DeFi protocols are rapidly adapting and growing to provide new ways for individuals to obtain more value from their money. And this […]

28 December, 2021

11 Biggest Sponsorships Deals for the Crypto Market in 2022

The global sports industry is looking to revamp its activities and recover from the after-shocks of the COVID-19 pandemic. Cryptocurrency platforms on the other hand have enjoyed immense growth and are searching for big platforms that can provide better brand visibility. That’s where sports and crypto make a perfect match with many global sports organizations […]

1 December, 2021

ChangeNOW Unveils a New Cashback Feature

ChangeNow offers crypto users smooth exchanges and doesn’t stop there. The exchange platform provides registered users a chance to profit from crypto swaps with cashback in NOW tokens through the ChangeNOW website. The cryptocurrency exchange and processing platform offer you an effortless way to turn your traffic into profit and boost your crypto journey. The […]

15 November, 2021

Celsius Casino is Raising the Temperatures with a Voluminous Game Lobby

Celsius Casino has become a go-to gaming destination for casino fans looking for an action-packed online gaming platform. The online casino boasts a robust game catalogue with over 4,000 games. The extensive game portfolio caters to Slots, Table Games, and Live Casino fanatics and is powered by well-known providers such as Evolution Gaming, NetEnt, and […]

9 November, 2021

ChangeNOW Has Announced the Release of its Own Digital Wallet

Limitless and swift crypto exchange platform ChangeNOW has released its own non-custodial NOW Wallet, facilitating fiat to crypto purchases and reliable crypto transactions from the comfort of a mobile phone. NOW Wallet is available in beta version for both iOS and Android devices and allows users to transact with over 20,000 currency pairs, regardless of […]

29 October, 2021

BitPanda Enhances Its BEST Rewards Programme

The EU-based cryptocurrency exchange, BitPanda, has improved its loyalty programme, BEST Rewards. It is now providing owners of its BitPanda EcoSystem Token (BEST) an additional 12% in potential revenue each year. Every registered BitPanda user who has BEST in his or her wallet and carries out at least one monthly trade will be eligible for […]

25 October, 2021

ChangeNOW’s AML Action Lead To The Return Of $15M COMP

Earlier this week, ChangeNOW announced that it was able to identify and return 45,505 COMP back to Compound. The estimated value of this recovery is around the $15m mark. This remarkable achievement is further proof of the effectiveness of the exchange’s Anti-Money Laundering (AML) procedures. In an announcement made on ChangeNOW’s website, the company provided […]

6 October, 2021