QuadrigaCX investigation reveals an alarming lack of accountability

[akeegan]

The QuadrigaCX case continues to remain in question but blockchain forensics Ciphertrace has provided insights including recent news that the founder of Quadriga had used customer funds to back his own crypto trading. The numbers are actually quite alarming... 9,450 BTC, 387,738 ETH and 239,020 LTC in over 67k transactions on other exchanges.

Apparently he was able able to override KYC requirements making false accounts so that he could create false deposits for trading. Ciphertrace goes on to say that the fake deposits and trades were used to keep the exchange running and provide fake liquidity.

This is actually super fascinating to read the details regarding how the entire situation was handled by analyzing the movement of transactions. I think it's a solid use case to show us why we would want more AML compliance, what are your thoughts?

https://coingeek.com/quadrigacx-investigation-reveals-an-alarming-lack-of-accountability/

[teddyelwyn]

Just shows why we would want more regulation on exchanges. I still can't believe the founder of the exchange could pull off something this big, no wonder he did an exit escape

[maxreish]

Just shows why we would want more regulation on exchanges. I still can't believe the founder of the exchange could pull off something this big, no wonder he did an exit escape

Yeah, I have a bad feeling and was thinking it was just an exit scam. Good to hear the investigations are revealing the truth now. But, how can they compensate the losses? The founder Cotten was dead. There are deposited funds to an unknown wallet. And there are rumors that they just fake his death to exit from this nightmare.

Look at this.

Of the $100 million that was originally “missing” when the exchange shut down, EY has only been able to locate $32 million so far, Jeffries concludes. They haven’t given up trying to find the rest, but considering the story so far, there’s a very good chance its gone.