Bitcoin Linked to QuadrigaCX Moves for First Time in 3 Years

Bitcoin wallets linked to crypto exchange QuadrigaCX are no longer dormant, with more than a million dollars worth sent to a crypto mixer

article-image

Source: DALL·E modified by Blockworks

share

Five bitcoin wallets attributed to defunct crypto exchange QuadrigaCX have curiously moved funds for the first time since the firm’s bankruptcy three years ago.

The movements were identified by blockchain sleuth ZachXBT, who said on Twitter that 104 BTC ($1.75 million) was transferred on Dec. 17.

ZachXBT noted that 69 BTC ($1.16 million) was sent from two of the addresses to crypto mixing service Wasabi, usually used to obfuscate transactional history of particular bitcoins. The QuadrigaCX-linked bitcoin addresses have been inactive since 2019. 

EY, the bankruptcy trustee and court-appointed monitor for QuadrigaCX’s estate, announced in 2019 that the company had accidentally moved 103 BTC (worth just under $469,000 at the time) to five cold wallets inaccessible by the company.

“The monitor is working with management to retrieve this cryptocurrency from the various cold wallets, if possible,” EY said at the time. Blockchain analysts previously linked those addresses to QuadrigaCX wallets; it’s those the same five addresses that are now active.

The circumstances surrounding the latest bitcoin moves are unclear. But Magdalena Gronowska, a member of QuadrigaCX’s creditor committee, told CoinDesk that EY had not moved the crypto, which suggests the bankruptcy trustee was not involved. 

Gronowska separately tweeted that QuadrigaCX bankruptcy inspectors were aware bitcoins are moving. They’re now working to determine more in hopes of recovering the crypto.

Only QuadrigaCX CEO held private keys upon his death

Vancouver-based QuadrigaCX, once one of Canada’s biggest crypto exchanges, entered bankruptcy proceedings around three months after founder Gerald Cotten died unexpectedly while traveling in India due to complications from Crohn’s disease.

His widow, Jennifer Robertson, then told Bloomberg she was unable to locate the passwords or business records for the company. 

Cotten alone controlled the private keys to QuagrigaCX’s operational wallets (different to the five bitcoin wallets recently active), leaving thousands of customers out of pocket.

His death sparked controversy and led to speculation that he’d faked his own death so he could make off with user funds, although those theories are yet unproven. Creditors previously requested authorities exhume Cotten’s body to confirm his death.

A Netflix documentary on the matter, “Trust No One: The Hunt for the Crypto King,” was released earlier this year.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

MicroStrategy discloses the purchase of 16,000 bitcoin throughout November

article-image

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks

article-image

DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely

article-image

Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US

article-image

Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said