The founder of Canadian cryptocurrency exchange QuadrigaCX reportedly transferred money to other accounts without the users being aware of this before being declared dead last year. As The Wall Street Journal and CoinDesk report, the monitor appointed by the court a report of 70 pages explain the financial situation. It says founder Gerald Cotten & # 39; significant volumes & # 39; has transferred currency to personal accounts on rival stock exchanges, apparently using funds to pay for luxury goods and real estate.
The QuadrigaCX site went bankrupt at the beginning of this year, causing customers to catch a cold. The monitor says QuadrigaCX owes 76,000 users around $ 215 million CAD (or about $ 163 million USD), but researchers have only earned back about $ 33 million. Cotten's wife reported earlier that most of her funds were locked in a cold wallet – only Cotten had the password. But the new report concludes that "instead of maintaining Cryptocurrency in Quadriga-controlled cold wallets, large amounts of cryptocurrency were transferred … to competing exchange accounts held in the personal name of Mr. Cotten."
Some of these holdings were returned to the QuadrigaCX exchange, but other funds went to other accounts that apparently were checked by Cotten. In one case, Cotten settled around $ 80 million in three years – funds that the monitor was unable to account for. Skeptics had already suggested that Cotten killed his death as part of a scam, and while the report is not trying to answer that question, it outlines what appears to be some sort of financial misconduct.
The monitor's report notes that QuadrigaCX appears to have few business records and that communication is spreading across multiple devices and accounts; it was "unable to find any evidence to indicate that Quadriga has maintained accounting or accounting since 2016." Cotten was busy transferring large amounts of money with little supervision; meanwhile, in recent years, he and his wife have acquired "important assets, including real and personal property," and "they often traveled to multiple vacation destinations often using private jet services."