Questions Rose Over the Loss of Access to Cold Wallets of Quadrigacx Exchange

As QuadrigaCX Exchange customers try to get their minds around the fact that their platform QuadrigaCX has just lost $190 million due to the death of the CEO, reports have emerged that the exchange wallets have started moving.

According to a Reddit user, there was suspicious activity in four wallets associated with the exchange in the past. After carefully following up the wallets, the user who goes by the name Palhello noticed the wallets had some transactions going on a few days after news of the CEO’s death hit the public. Gerald Cotton was the founder and CEO of QuadrigaCX, and as a way of preventing any hacker from gaining access into the platform wallets, they used cold wallets with the latter being the sole holder of the private keys. But his death in India due to a crohn’s illness has plunged QuadrigaCX into huge problems. On the other hand, Kraken CEO Jesse Powell called on the Royal Canadian Mounted Police to reach out to its exchange when carrying out investigations. His exchange has thousands of wallets associated with QuadrigaCX, and it would be of huge help in getting to the bottom of this bizarre story of lost keys.

Is This an Exit Strategy?

According to Peter Todd, a cryptography and Bitcoin expert, this could be well executed exist strategy being played by people who have the private keys. From Todd point of view key employees of QuadrigaCX and Cotton’s family are likely to be the perpetrators of the scam in play. But since investigations are ongoing, it’s up to the police to uncover the whole truth. Information is per article published on CCN a cryptocurrency based news website.

Apart from the above, others argue that it might be wallets associated with QuadrigaCX that are currently involved in the recent transactions. But at the moment it’s hard to prove the wallets are indeed the ones which the CEO had control over.

As speculations continue to arise from left right, and center one fact is coming out this whole situation could have been prevented. Furthermore, the exchange previously claimed that they were using a multi-signature system. The later enables various holders of keys who have to combine the keys when accessing the wallets. Although QuadrigaCX claims they don’t have the keys they have hired several security experts to hack into Cotton’s laptop and get the funds.