QuadrigaCX Mistakenly Sent 103 BTC Into an Inaccessible Wallet

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QuadrigaCX creditors received more bad news this week when it was revealed that someone at the exchange inadvertently sent 103 BTC, worth $350,000 at the time, into one of the cold wallets that have been inaccessible since the death of the founder Gerald Cotten. The revelation came to light as part of an update on the case issued Monday by appointed monitor EY, who did not state how the accident happened. This error, which took place February 6, further reduces the amount of capital available to pay off investors whose funds are trapped.

Accident or Part of the Plan?

When news of the erroneous transfer broke, views were mixed. Some believed that the Bitcoin transfer was simply a question of a mix-up in the Bitcoin addresses, while Ledger CEO Eric Larcheveque suggested that QuadrigaCX could have accounts set up on other exchanges that triggered payments when certain balance thresholds were reached. This trigger could have come through a customer adding funds by mistake. Those who believe that Cotten is alive and waiting for the right time to access the ‘lost’ funds have claimed that the transfer of such a large amount so soon after things got more ‘official’ with the EY appointment is far too suspicious.

EY Sets up QuadrigaCX Creditor Hotline

Other points noted in the EY update include:

  • QuadrigaCX’s current balance in its hot wallets totals CAD $902,743 ($681,855).
  • EY has received no funds from third-party payment processors yet, but one is holding five bank drafts totaling CAD $25.2 million ($19 million).
  • Two active laptops, two older laptops, two active cell phones, two “dead” cell phones, and three encrypted USB keys owned or used by Cotten have been retrieved.
  • EY has established a toll-free hotline – 1-855-870-2285 – and email address – [email protected] – to allow creditors and other interested parties to find additional information on the court proceedings.

With EY continuing their investigations, and seemingly uncovering new information all the time, what the next 21 days holds for beleaguered QuadrigaCX customers is anyone’s guess.

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