Quadriga CEO Death - Real or fractional banking?

[tinkerr10]

I read this news today and was certainly a little surprised, but not much. Immediately it is obvious that he did not die. Everything was clearly planned long ago:
1) All coins are on cold media. 
2) Only he had the password 
3) Sudden death 

Everything is obvious

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[numismatist]

I read this news today and was certainly a little surprised, but not much. Immediately it is obvious that he did not die. Everything was clearly planned long ago:
1) All coins are on cold media. 
2) Only he had the password 
3) Sudden death 

Everything is obvious

Not really. But the fractional banking accusations are true. Follow the money trail, we have a transparent ledger for a purpose.
Precise report at https://blog.zerononcense.com/2019/02/04/quadrigacx-chain-analysis-report-pt-1-bitcoin-wallets



Regarding his Death, this might be true or not, who knows. If there is no money left to make a run with he just really might be dead. Fractional banking even opens up a remote possibility of having gotten killed.

[timerland]

I read this news today and was certainly a little surprised, but not much. Immediately it is obvious that he did not die. Everything was clearly planned long ago:
1) All coins are on cold media. 
2) Only he had the password 
3) Sudden death 

Everything is obvious

Not really. But the fractional banking accusations are true. Follow the money trail, we have a transparent ledger for a purpose.
Precise report at https://blog.zerononcense.com/2019/02/04/quadrigacx-chain-analysis-report-pt-1-bitcoin-wallets



Regarding his Death, this might be true or not, who knows. If there is no money left to make a run with he just really might be dead. Fractional banking even opens up a remote possibility of having gotten killed.

Some interesting findings from the article:

It appears that there are no identifiable cold wallet reserves for QuadrigaCX.
It appears that QuadrigaCX was using deposits from their customers to pay other customers once they requested their withdrawal.
It does not appear that QuadrigaCX has lost access to their Bitcoin holdings.

It's still only speculation, but it does raise interesting points. The fact that there seems to be no linked cold storage wallet that has ever been active is shady, and increases the chances of them running a fractional reserve since essentially they'd be running a ponzi of taking customer deposits and repaying older withdrawals.

But still, it could just be that the cold wallet has been obscured from public eyes and that QuadrigaCX does have one. But, the chances of them operating on fractional reserve is higher.

When your bitcoin is with a third party, it is the same as if you deposited a sum of money with a bank - they are able to lend it out and do whatever. Except in the bitcoin world there are way less regulations, and exchanges can often become insolvent as a result.

[MTVuser07]

Let's look truth eyes. We are all humans and greed sometimes takes over. And this is not an isolated case, do not consider me, of course, biased, but it may well be that he wanted to be rich and that’s all.

[Indamuck]

I'm 99 percent sure his death is a hoax.  "hurr durr our ceo died good bye 20,000 bitcoins" lol just no

Bet your ass they are trying to cover this up and all employees that worked for this exchange are using this death as an excuse.

[Adhichan]

I'm 99 percent sure his death is a hoax.  "hurr durr our ceo died good bye 20,000 bitcoins" lol just no

Bet your ass they are trying to cover this up and all employees that worked for this exchange are using this death as an excuse.

many rumours about its, personally i am not trust this accident.too many people tempted when they looking big cryptocurrency asset in exchanges, even that their own CEO.much people be lier since cryptocurrency price very high.

[Jating]

I really can't fathom as to what happened to Quadriga CEO he might be faking his death for all we all and just trying to hide because he has embezzled huge amount of funds and can't return in back. There's another good thread regarding this issue here, https://bitcointalk.org/index.php?topic=984498.0. So let see how it goes because there's a lot of new evidence surfacing everyday.

[cellard]

This seems like another Cryptsy to me, but improved. He may have looked at Big Vern's scheme (the CEO of Cryptsy, which left with all of the money to China I think, I forgot about this story) but he took it to the next level and decided to fake his death, in India of all places. The death certificate points to a pretty rare reason to die, usually people don't die from that.

It's just another reminder to keep your keys safe. We just had cryptopia the other day as well. These things will keep happening forever. It's just not possible to have an active trading account in crypto. You have to do your trading, and move funds to your wallet. Daytrading is impossible, just assume it, or assume the risk of full losses if the CEO "dies" or exchange gets "hacked".

[Jating]

This seems like another Cryptsy to me, but improved. He may have looked at Big Vern's scheme (the CEO of Cryptsy, which left with all of the money to China I think, I forgot about this story) but he took it to the next level and decided to fake his death, in India of all places. The death certificate points to a pretty rare reason to die, usually people don't die from that.

It's just another reminder to keep your keys safe. We just had cryptopia the other day as well. These things will keep happening forever. It's just not possible to have an active trading account in crypto. You have to do your trading, and move funds to your wallet. Daytrading is impossible, just assume it, or assume the risk of full losses if the CEO "dies" or exchange gets "hacked".

Yes, exactly, this guy really took it to the next level. Now, we are not only concerns about a hack or some inside job, but the death of the exchange CEO itself, lol, what more can you ask for in its crypto verse?

We should have like a repository here of methods on how to be prepare in this such scenarios, but then again, most of the us doesn't do anything to protect our funds in an exchanges, until it's too late.

[proTECH77]

Indeed, for this information to be still vague, some people still suspect that this is only a falsehood made for an exit scam from the market. Try to see, someone tried to do an analysis with those wallet

https://twitter.com/tayvano_/status/1092439754849759233

Based on the analysis done i think the CEO death was fake due to some funds movement from one exchange to another a year ago, also, if this is true then, why not him trust his wife with those private keys before he die?.

LESSON:: Trust any of your family member with your private key in case death visit without any notice, as per one my wife has my private keys

[breathlessz]

Indeed, for this information to be still vague, some people still suspect that this is only a falsehood made for an exit scam from the market. Try to see, someone tried to do an analysis with those wallet

https://twitter.com/tayvano_/status/1092439754849759233

Based on the analysis done i think the CEO death was fake due to some funds movement from one exchange to another a year ago, also, if this is true then, why not him trust his wife with those private keys before he die?.

LESSON:: Trust any of your family member with your private key in case death visit without any notice, as per one my wife has my private keys

right, at least by leaving the key to the people closest to us, it will benefit our next generation. besides that the market circulation continues and does not decrease, due to the reduced volume

[lyfecoin]

There are many things that does not connect in the case...starting from the Will he wrote just 1 month before his death to his death certificate
Now the latest update from E&Y is they have not found any traces of coldwallet .They only found some coins in hot wallet .
Bittrex has informed RCMP (the Canadaian equivalant of FBI) about some transactions/deposits that came from Quadriga exchange wallets after owner'd death

The city of Jaipur ,in India is famous for agents who can create fake death certificates..can not prove death until his body is recovered and DNA test is confirmed

[numismatist]

This seems like another Cryptsy to me, but improved. He may have looked at Big Vern's scheme (the CEO of Cryptsy, which left with all of the money to China I think, I forgot about this story) but he took it to the next level and decided to fake his death, in India of all places. The death certificate points to a pretty rare reason to die, usually people don't die from that.

It's just another reminder to keep your keys safe. We just had cryptopia the other day as well. These things will keep happening forever. It's just not possible to have an active trading account in crypto. You have to do your trading, and move funds to your wallet. Daytrading is impossible, just assume it, or assume the risk of full losses if the CEO "dies" or exchange gets "hacked".

Cryptsy, Mintpal, some others if we oldbies start to "forgot about this story" how are newcomers supposed to avoid similar traps...
By the way Vern didn't got very far.
Daytrading is doable, still. Usually the shady exchanges pop up early on street rumors. So that's why I am doing monthly forum searches for anything tradeside related, pointing at the small subset that I'm using.
Canadians got fucked because there aren't that many alternatives to be used for their native currency.

[bajingluncat]

yes, the news of Gerald Cotten, quite a stir, many people consider this a game or forgery of death because of his sudden death, but from here we must study in a life of trust that is very expensive in value, and absolute trust is only in ourselves, there is no one we can trust completely. And from here we can conclude the weakness of crypto currency investment is like death, coins can be lost at any time and the worst thing cannot be predicted even for the next second. I am also quite surprised by this news, no matter how sudden his death, there must be a little time for Gerald to tell his wife the key, because it is very important, if everything is dark like this surely the news will develop wildly which raises uncontrolled suspicions

[aleandromagno]

I am surprised that until now the police or some other institution have not said anything about it. Somewhere, I read that a specialist hired to find these passwords stated that there were no such cold wallets (!!!). Sooner or later we'll find out what the truth is, but it looks like we have to wait. It does not change the fact that the situation is really strange and suspicious.

[numismatist]

The city of Jaipur ,in India is famous for agents who can create fake death certificates..can not prove death until his body is recovered and DNA test is confirmed

Unearthing the blockchain revealed new discoveries, https://twitter.com/brian_armstrong/status/1098656491609849856 which is to their own statement "speculation".
The founding date of Quariga looks interesting, 2013 same year when I got attracted by bitcoin.

Armstrong points at some ETH software trouble in 2017 resulting in lost funds. The accusations of trades using customer funds seem to be unprooven. The still ongoing Bearmarket applied the final death blow, now there I can follow by some glance at my own portfolio. At least, as a privateer, still beein healthy.

[ryzaadit]

Its really makes me curious about these problems, I don't know how the Term & Condition for their asset management. why only one single people holding the key also the company can be using Multi Signature for maintaining their asset right, to spent some fund need around 3-5 people to confirmed the movement of the asset if we got a problem like this.

[exstasie]

Unearthing the blockchain revealed new discoveries, https://twitter.com/brian_armstrong/status/1098656491609849856 which is to their own statement "speculation".

Thanks for posting, I missed this one. Some interesting speculation from an unlikely source. I think what he's saying sounds very plausible.

I recommend others read the thread too but here are some key posts:

We identified clusters that look like QCX's "cold storage", were controlled by a human (manually), and balances were moved out by early 2018

They suffered a multimillion dollar bug in June 2017 (before things went vertical). https://www.reddit.com/r/ethereum/comments/6ettq5/statement_on_quadrigacx_ether_contract_error/ … This is when we start to see movement of funds to "cold storages"

Patterns of sends from cold storage suggest they tried keeping exchange afloat, and maybe attempted to trade their way out of a hole; (again just a guess here)

Liquidity dried out and bear market of 2018 may have caught up with them; Sequence of events suggests this was a mismanagement with later attempt to cover for it.

This implies that at least few people inside Qadriga knew that they were running fractional. If so, then it's possible that untimely death of their CEO was used as an outlet to let the company sink.

And a cogent reply from Caitlin Long:

WOW. If true, it shows again that insolvent financial institutions can stay in biz a long time--until they become illiquid. This is why #proofofkeys is V impt for #crypto & why #Wyoming's law (where #rehypothecation a felony) is also V impt to ensuring solvent #crypto custodians
9 replies 24 retweets 244 likes

[Zadicar]

I am surprised that until now the police or some other institution have not said anything about it. Somewhere, I read that a specialist hired to find these passwords stated that there were no such cold wallets (!!!). Sooner or later we'll find out what the truth is, but it looks like we have to wait. It does not change the fact that the situation is really strange and suspicious.

We wont really have any choice but to wait up for further updates regarding into this situation either it would be solved or would just remained puzzled about into this incident.
I do keep searching for new updates as the time goes by but i doubt this will really takes time until the people here on crypto would tire out to find the truth.

[wahyu wida]

I am surprised that until now the police or some other institution have not said anything about it. Somewhere, I read that a specialist hired to find these passwords stated that there were no such cold wallets (!!!). Sooner or later we'll find out what the truth is, but it looks like we have to wait. It does not change the fact that the situation is really strange and suspicious.

We wont really have any choice but to wait up for further updates regarding into this situation either it would be solved or would just remained puzzled about into this incident.
I do keep searching for new updates as the time goes by but i doubt this will really takes time until the people here on crypto would tire out to find the truth.

right, waiting for the latest news to reveal the truth is the best way, after that we can predict what will happen after that, so we can determine our own pace in this business