QuadrigaCX, which was once Canada’s leading cryptocurrency exchange, has endured plenty of problems over the past year including a bank freeze, legal disputes, and other troubles. Last week, the exchange filed for creditor protection, citing “significant financial issues” as the cause. Now, the fact that some of QuadrigaCX’s wallets seem to be active is raising suspicion within the crypto community.
According to some sources, QuadrigaCX’s cryptocurrency is being drained from wallets that were previously reported missing. When QuadrigaCX announced that it was filing for creditor protection last week, it also reported that it was “attempting to locate…reserves held in cold wallets.” However, many critics suspect that the cryptocurrency stored in those lost wallets is now being actively withdrawn.
Although it has not been proven whether the active wallets are in fact the lost wallets, the circumstantial evidence is damning. The CEO of QuadrigaCX, Gerald Cotten, was reported dead last month, and court testimony from his widow Jennifer Robertson has indicated that Cotten had “sole responsibility for handling the funds and coins.”