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.

Recently Similar News

Latest Guides

Latest News


Bao Casino Offering High Roller Bonus

Bao Casino, the online cryptocurrency based casino, is offering a large bonus for high rollers. Bao Casino, the online cryptocurrency based gambling site, is offering a new bonus for their high rollers. It is very easy to qualify for this promotion and is available to anyone who has the capital. For a limited time only, […]

21 September, 2020
Binance,Blockchain,Cryptocurrency,Exchange Platforms

Binance Visa Cards Are Now Available in Europe

Binance, the largest cryptocurrency exchange online, has recently released a Visa card in Europe, allowing users to get up 8% cashback on all purchases. Binance, the world largest cryptocurrency exchange, has partnered with Visa in order to continue their expansion into the European market and released the Binance Visa card. This card is available to […]

21 September, 2020
CFD Trading Platform,Cryptocurrency,Exchange Platforms,Trading

IQ Option Identifies Some of the Biggest Obstacles in Trading

IQ Option, the CFD and cryptocurrency trading platform, has recently created a blog post highlighting some of the biggest obstacles traders face when trading. IQ Option, the online cryptocurrency and CFD trading platform, has released a blog post highlighting some of the biggest and most challenging obstacles a trader can face while conducting their trades. […]

20 September, 2020
Bitcoin,Crypto Wallets,Cryptocurrency,Trading

Kraken Wins First Ever U.S. Bank Charter Approval For A Cryptocurrency Exchange

Kraken, the online cryptocurrency exchange, has been granted regulatory approval to be the first cryptocurrency firm with a Special Purpose Depository Institution (SPDI). Kraken, the large cryptocurrency exchange, has recently been granted approval to operate as the world’s first Special Purpose Depository Institution (SPDI), which for now is being called Kraken Financial. The license was […]

20 September, 2020

Binance Reviews The Month In Cryptocurrency And Highlights DeFi

Binance, the online cryptocurrency exchange, has released their monthly review, highlighting the historic rise of decentralized finance. Binance, the largest cryptocurrency exchange in the world by volume, has recently released their monthly review of the cryptocurrency space, highlighting the massive growth in the decentralized finance (DeFi) sector. Besides the launch of Binance Smart Chain, Binance […]

18 September, 2020

CoinMarketCap Identifies Bullish Events for Bitcoin and Explains the Drama Behind SushiSwap

CoinMarketCap, the world’s largest cryptocurrency market cap aggregator, has released an opinion piece on events surrounding Bitcoin and all the drama behind the SushiSwap saga. CoinMarketCap, the large online cryptocurrency market capitalization aggregator, has created an analysis on events surrounding Bitcoin and the craziness surround the latest DeFi craze, SushiSwap. The main event related to […]

18 September, 2020
Decentralised,Ethereum,Exchange Platforms,Trading

Uniswap Launches UNI Governance Token With Airdrop

Uniswap, the large decentralized exchange, has recently launched their governance token, UNI, and have given away 15% of the token to users. Uniswap, the Ethereum based decentralized exchange and decentralized financed (DeFi) application, have recently launched the governance token, UNI, and have airdropped a large portion of the token supply. All in all, Uniswap distributed […]

17 September, 2020
Bitcoin,Changelly,Cryptocurrency,Exchange Platforms

Changelly Explains The Concept of Short Selling

Changelly, the online cryptocurrency exchange, has recently released an article on short selling and how you can take advantage of it as a user. Changelly, the larger online cryptocurrency exchange, has created a blog post highlighting short selling and what their users can do to take advantage of this trading feature. Short selling can take […]

16 September, 2020