Unofficial Quadriga Cx Thread

[GrosWesh]

Pretty interesting article 

https://blog.zerononcense.com/2019/02/16/report-shows-quadrigacx-cold-wallets-actively-involved-in-significant-criminal-activity-ties-to-silk-road-hacked-funds-identity-theft-and-drug-human-trafficking

[1714654069]

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[1714654069]

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[1714654069]

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[gentlemand]

Brian Armstrong of Coinbase weighs in with their best guesses after a bit of analysis.

https://twitter.com/brian_armstrong/status/1098656491609849856

TLDR - they were a fractional reserve for quite some time, the bear market stopped the plates from spinning, they used the owner's death as an out.

[squatter]

Brian Armstrong of Coinbase weighs in with their best guesses after a bit of analysis.

https://twitter.com/brian_armstrong/status/1098656491609849856

TLDR - they were a fractional reserve for quite some time, the bear market stopped the plates from spinning, they used the owner's death as an out.

That sounds about right to me.

I was hoping there would be some good blockchain analysis that might back up the fractional reserve theory. The circumstantial evidence -- especially when you consider the losses from the ETH smart contract bug and the ongoing delays in paying customers -- was already pretty strong.

I wonder if the owner really died or not. If so, I wonder why the other managers/directors thought they could hide the insolvency this way.

[rdbase]

Brian Armstrong of Coinbase weighs in with their best guesses after a bit of analysis.

https://twitter.com/brian_armstrong/status/1098656491609849856

TLDR - they were a fractional reserve for quite some time, the bear market stopped the plates from spinning, they used the owner's death as an out.

This makes sense to what is going on with quadrigacx and this coming from one who owns one being coinbase pro.
So getting an observation from this viewpoint is exactly what the people who are still looking for answers to what happened and what is potentially going to happen to their funds and crypto they have locked up in this failed exchange.

[gentlemand]

https://www.youtube.com/watch?v=GZvXqg5KyJM

Kraken have released this podcast series that covers their analysis of Quadrigacx. My connection is so hopeless here I can't get it to work. Maybe it'll enlighten someone.

[digit]

$100k reward offered by Kraken to find the money  ..........go go go  
https://qcxtips.com/

QuadrigaCX Case Tips for Law Enforcement Investigation
This survey is run by Kraken and is not in any way affiliated with QuadrigaCX. Submissions will be passed on to the RCMP, FBI and other interested law enforcement agencies. Thank you for your assistance in solving this case and recovering the missing coins for Quadriga's creditors.
Background and $100K reward for information
About a month ago, on January 26, QuadrigaCX (a Canadian crypto exchange with clients around the world) suspended operations. Seven weeks prior, their CEO passed away suddenly and unexpectedly, leaving the business without a continuity plan. Supposedly, he was the only person who knew the location of and/or could access the client funds (fiat and crypto) totaling approximately $190 million US dollars (belonging to 115,000 clients). Some say the events and circumstances surrounding this case are too suspicious to be believed.
Kraken wants to bring awareness and attention to this case, in hopes that we can help discover some or all of the missing client funds.

Listen and/or watch our podcast to hear the many facts of the case so you can help us solve this mystery. We reveal our own analysis and subjective assessment of the most plausible explanations or theories based on our experience as exchange operators.

EP 3: Chasing the Conspiracy (what we may know)
EP 4: Solving the Conspiracy (what we think happened)

Both found here: https://www.kraken.com/en-us/learn/podcast

After reviewing the episodes, do you know where the missing client funds are? Do you know who may know something that can help law enforcement locate the funds?

Kraken is offering up to a $100,000 USD reward for information leading to a significant break in the case or recovery of the missing client funds. It is up to Kraken's sole discretion which tips warrant a reward, if any. The total of all rewards will not exceed $100,000 USD. Kraken may end this reward program at any point in time. All leads collected by Kraken will be provided to the RCMP, FBI or other law enforcement authorities, who have an active interest in this case. More about Kraken at https://www.kraken.com

[bL4nkcode]

Here some updates related to QuadrigaCX

[Breaking!] Over 600k+ Ethereum Belonging to QuadrigaCX Has Been Found!
https://www.reddit.com/r/CryptoCurrency/comments/avwzce/breaking_over_600k_ethereum_belonging_to/

[gentlemand]

Here some updates related to QuadrigaCX

[Breaking!] Over 600k+ Ethereum Belonging to QuadrigaCX Has Been Found!
https://www.reddit.com/r/CryptoCurrency/comments/avwzce/breaking_over_600k_ethereum_belonging_to/

'The manner in which they were sent is consistent with the theory posited in Jennifer Robertson’s affidavit that they were sent to these exchanges as a means of storage.'

So first he was boasting of his multi sig. Then he was paper wallet only. Then it was all under his sole control. And then this reveals he was using exchanges as a 'safe' place to store coins?

Was his mind slowly dying before his body did?

[gentlemand]

https://www.bloomberg.com/news/articles/2019-03-01/quadriga-has-6-cold-wallets-but-they-don-t-hold-any-crypto?srnd=cryptocurrencies

More oddness. The much vaunted cold wallets appear to have been empty for quite some time. I guess this backs up Coinbase's theory that they'd been insolvent for quite some time and finally ran out of road.

[rdbase]

https://www.bloomberg.com/news/articles/2019-03-01/quadriga-has-6-cold-wallets-but-they-don-t-hold-any-crypto?srnd=cryptocurrencies

More oddness. The much vaunted cold wallets appear to have been empty for quite some time. I guess this backs up Coinbase's theory that they'd been insolvent for quite some time and finally ran out of road.

That is the strangest thing I have seen in this case too.
https://ambcrypto.com/quadrigacxs-cold-wallets-are-untouched-since-april-2018-says-ey-report/
No funds were sent to these wallets? Then where were the funds for the customers sent to?
This case of quadrigacx just gets weirder and weirder with everything they come across.
Next thing they will find out Cottens whereabouts with him sun tanning in the bahamas.

[Lanatsa]

https://www.bloomberg.com/news/articles/2019-03-01/quadriga-has-6-cold-wallets-but-they-don-t-hold-any-crypto?srnd=cryptocurrencies

More oddness. The much vaunted cold wallets appear to have been empty for quite some time. I guess this backs up Coinbase's theory that they'd been insolvent for quite some time and finally ran out of road.

Dang! Their shady activities is gradually being bust up and all is on negative side.If the wallet is already empty since last year then most likely this incident is really being planned.

[Itskok]

Here is our update about the QuadrigaCX case, also published on our twitter account:
https://twitter.com/whitestream5/status/1103091778100576256

Since EY lately discovered some of QuadrigaCX cold wallet addresses, we managed to analyze some of them.
Together with insights that we already extract from QuadrigaCX hot wallets, we can shed some light on QuadrigaCX Bitcoin transactions from the last six month.

The time period we checked was since July 2018 to February 2019, the average Bitcoin price at this time frame is around $5,700.
We saw that both QuadrigaCX cold and hot wallets sent around 5,571 BTC to a suspicious intermediary wallet at this time period.
We suspect that this wallet belongs to QuadrigaCX too.

QuadrigaCX hot wallet sent to the suspicious intermediary wallet 3,432 BTC, which is around $19,500,000 US.
QuadrigaCX hot wallet:
https://www.walletexplorer.com/wallet/000009200775868e/addresses

QuadrigaCX cold wallet sent to the suspicious intermediary wallet 2,139 BTC, which is around $12,200,000 US.
QuadrigaCX cold wallet:
https://www.blockchain.com/btc/address/1JZJaDDC44DCKLnezDsbW43Zf8LspCKBYP

The suspicious intermediary wallet:
https://www.walletexplorer.com/wallet/006daa655b240256/addresses

The suspicious wallet has interactions with more Bitcoin exchanges and not just from QuadrigaCX, but most of his incomes are from QuadrigaCX.
The suspicious wallet sent most of his funds to two Chinese exchanges, Huobi and Binance.

Around 1,176 BTC were sent to Binance, which is $6,700,000 US.
Around 5,263 BTC were sent to Huobi, which is $30,000,000 US.

Huobi wallet:
https://www.walletexplorer.com/wallet/Huobi.com-2

Binance wallet:
https://www.walletexplorer.com/wallet/0000011bd9c73aab/addresses

Thank you.
whitestream - Blockchain Intelligence
https://whitestream.io

[rdbase]

Seems that the co-founder |who is still alive! | was using investors of the exchanges funds to use on bitmex.
https://www.theblockcrypto.com/2019/03/07/quadrigacx-co-founder-michael-patryn-allegedly-traded-large-positions-on-bitmex
So he was essentially gambling with customers funds by leveraging on this trading platform and then losing them?

[freedomno1]

Few days to meeting

Update to Affected Users:

The purpose of this communication is to update Affected Users on the ongoing bankruptcy proceedings.

Please note that we have received notice from Ernst & Young Inc. that the Applicants’ bankruptcy proceedings under the Bankruptcy and Insolvency Act have commenced. A copy of the Order of the Court terminating the CCAA proceedings and authorizing the transition into bankruptcy can be found here (the “Bankruptcy Transition Order”).

Below are a few key highlights of the Bankruptcy Transition Order:

Although the bankruptcy proceedings have commenced, the CCAA proceedings will be formally terminated when the Monitor files with the Court a discharge certificate. Certain expenses need to be paid and the Monitor’s and its counsel’s and Representative Counsel’s fees need to be approved by the Court within the CCAA proceedings.
Ernst & Young Inc. will transition its role from Court-appointed Monitor to Trustee in Bankruptcy.
Grant Thornton Limited, as Chief Restructuring Officer, will be discharged as CRO once the Monitor files the discharge certificate.
The Representative Counsel Appointment Order, the Official Committee Appointment Order and certain other orders granted within the CCAA proceedings will continue to have effect in the bankruptcy proceedings.
At the first meeting of creditors in the bankruptcy proceedings, Representative Counsel will file an omnibus proof of claim on behalf of Affected Users for purposes of voting on the matters at the first meeting.
The first meeting of creditors is tentatively scheduled for May 2, 2019 at 10:00 a.m. (Halifax time).

Representative Counsel will continue to keep Affected Users apprised of relevant developments. For answers to commonly asked questions, please refer to our FAQ and updated FAQ sheets. Further information can be found about the proceedings at our website here.

Affected Users are encouraged to voice their concerns by tweeting to the Official Committee. Affected Users’ questions and comments will be forwarded by the Official Committee to Representative Counsel for compilation and answer via updated FAQs. The Official Committee’s twitter account (@QCXCommittee) can be found here

https://twitter.com/QCXCommittee

[CoinCodex]

FBI is investigating the failed QuadrigaCX exchange, read more:

https://coincodex.com/article/3757/the-fbi-is-investigating-the-failed-quadrigacx-exchange-asks-victims-for-information/

[gentlemand]

https://twitter.com/evanmthomas/status/1141501872467001344

According to the latest report issued Quadriga was a flat out bucket shop and our corpse friend was siphoning off funds to do failed margin trading for many years. Presumably more will emerge about the name changing non corpse.

[fr4nkthetank]

> Mr.  Cotten  created  Identified  Accounts  under  aliases  where  it  appears  that Unsupported  Deposits  were  deposited  and  used  to  trade  within  the  Platform resulting in inflated revenue figures, artificial trades with Users and ultimately the withdrawal of Cryptocurrency deposited by Users; and
- 8 - (h)Substantial Funds were transferred to Mr. Cotten personally and other related parties. The Monitor has not located any support justifying these transfers.

Simple enough (╯°□°)╯︵ ┻━┻

[Steamtyme]

Yeah I was reading the story last night. I knew it was a bad scenario, but never quite imagined it was this bad. Might have picked up a few tricks from his founding partner with all the identity games he was playing to trade with client funds. I do feel I got off lucky with them considering the amounts of times I was holding balances there to set up a purchase or sell some off.

Cotten also created various user accounts within the Quadriga platform, including under the aliases Chris Markay, Aretwo Deetwo and Seethree Peaohh.

https://www.msn.com/en-ca/money/topstories/founder-of-crypto-exchange-quadriga-moved-users-funds-to-personal-accounts-ernst-and-young/ar-AADb1zM?li=AAggNb9

I knew they had Bots, but droids. hmmmm
"These are not the funds you're looking for"

Had a good laugh at that part. Then there was more about not filing personal tax returns, and when they were filed not claiming income from Quadriga. This guy was all over the map. I was amazed at how they apparently didn't file corporate taxes either. One reason being one of their methods of KYC was done through Canada Post.

[gentlemand]

Had a good laugh at that part. Then there was more about not filing personal tax returns, and when they were filed not claiming income from Quadriga. This guy was all over the map. I was amazed at how they apparently didn't file corporate taxes either. One reason being one of their methods of KYC was done through Canada Post.

And this is why if some total stranger is going to take charge of my money I'm not going to do it unless there's some significant regulation they have to satisfy before they're permitted to.

I support regulation if it means it creates the inability of the stupid and/or dishonest to reach the market in the first place.

[gentlemand]

Info about the liquidation here and a balance checker for those who have claims. If you have a claim to make then you need to do it by August 31st.

https://documentcentre.eycan.com/Pages/Main.aspx?SID=1445

https://userbalance.quadrigacxtrustee.com/