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QuadrigaCX Reportedly Didn't Lose Access to Bitcoin Funds – Could it More Than a Mistake?
The exchange reached out to Nova Scotia Supreme Court while seeking creditors' protection.
However, many analysts now believe that QuadrigaCX could be nothing but a well-orchestrated exit scam. The shift in opinion comes after independent investigators claimed that the exchange was deceptive about having bitcoin cold wallets at the first place.
Researchers at Zerononcense identified bitcoin wallets allegedly associated with QuadrigaCX after collecting pieces of evidence from the exchange's former customers. Researchers were able to trail bitcoin trades – from verified customers' accounts to those owned by QuadrigaCX. In the report, Zerononcense listed 31 of these bitcoin wallet addresses.
Zerononcense provided some sample withdrawal transaction ids that interlinked customers' wallet addresses. The researchers found cluster wallets that were granting the customers' withdrawal requests were waiting from deposits from other customers' wallets. In some cases, the Quadriga cluster wallets had received funds from the portfolios of other crypto exchanges.
Therefore, it is likely that Quadriga was pitting traders' positions against each other to fulfill deposit/withdrawal requests.
Separate research shared by My Crypto CEO and Founder Taylor Monahan revealed a similar case for Ethereum. She shared QuadrigaCX's three ether wallet addresses. Two of these wallets made huge withdrawals to addresses associated with other top exchanges such as BitFinex, ShapeShift, and Poloneix. Between 2015 and 2017, Quadriga had made withdrawal worth approx $22 million, adjusted according to ETH/USD rate change.
tl;dr: I'm seeing NO indication of Quadriga ever having cold / reserve wallets for ETH.
Whether it is more than an unfortunate mistake of the exchange to grant the CEO full control over user funds or not can only be confirmed after an official investigation is confirmed.
Until then, no details of the investigation can be definitively proven.
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