Zerononcense, a crypto blog run by editor James Edwards, has claimed that it has found the trails of the missing $90 million worth of crypto from the QuadrigaCX exchange. The report was curated by the CEO and editor of Zerononcense with corroborating information from Jesse Powell, CEO of Kraken Exchange and Taylor Monahan, CEO of MyCrypto.
You can read about the cryptocurrency exchange Kraken’s $100,000 reward for the missing QuadrigaCX funds in 21CRYPTOS’ previous article.
The report identified the transfer of 649,708 Ethereum from the wallets of QuadrigaCX to Poloniex, Bitfinex and Kraken exchanges. Although Jesse Powell has said that Kraken does not have any funds from the wallets of QuadrigaCX. Kraken have offered a $100K reward for tips leading to the missing $190 million taken from Quadriga last month.
Apparently, the Ethereum was transferred to these exchanges as a means of ‘storage’ during the years that QuadrigaCX was in operation and offering Ethereum on their exchange.
According to the research undertaken, Edwards alleges that QuadrigaCX had no offline wallet reserves at all. “It appears that QuadrigaCX was using deposits from their customers to pay other customers once they requested a withdrawal. It does not appear that QuadrigaCX has lost access to their bitcoin holdings,” the report states.
This Discovery Could Mean Users Will See Their Funds Returned
“Based on the cumulative analysis of MyCrypto’s Monahan, it appears that there is a high likelihood that there are funds that belong to QuadrigaCX at Bitfinex and Poloniex,” the report read.
The quantity of bitcoin held by QuadrigaCX was “substantially less” than was reported in a sworn affidavit submitted to a Canadian court last month by Cotten’s wife, Jennifer Robertson.
The report does not imply that there was any corrupt intent behind the transfers or that these exchanges are in collusion with one another. Nor does it imply that Robertson, was aware of the fact that Gerry Cotten sent the funds to these exchanges.
If the funds are in those exchanges and the exchanges themselves are willing to transfer them back to QuadrigaCX, the users have a good chance of being reimbursed.
“This discovery may also allow QuadrigaCX to regain solvency and continue operating as well. Thus, all parties stand to gain significantly by reaching out directly to Bitfinex, Poloniex, and Kraken to share this report and/or inquiring about accounts related to QuadrigaCX/Gerry Cotten”.