The scandal of QuadrigaCX crypto exchange is one of the biggest in the crypto history. In short, the platform was shut down with users’ funds accounted of more than $163 million in the cold wallet. The only person who knew the password to the cold wallet was the founder of the crypto exchange, Gerald Cotten, but he reportedly died in India at the end of 2018. The question was how to return money to the owners.
Today, new details of this scandalous event have appeared. According to the investigators, Cotton siphoned money to other account of rival exchanges.
The 70-page report of The Wall Street Journal says that Gerald Cotton had transferred large sums of money on rival exchanges to pay for luxury goods and real estate before he died.
The report states:
“…instead of maintaining cryptocurrency within Quadriga-controlled cold wallets, large volumes of cryptocurrency were transferred … to accounts at competitor exchanges maintained in Mr. Cotten’s personal name.”
Some people suggested that he had faked his death. The report does not say whether it is true or not, yet it claims that it is some kind of financial misconduct.
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