$90M Worth of ETH Lost by QuadrigaCX Has Been Located – Is There Hope for Quadriga Users?

$90M Worth of ETH Lost by QuadrigaCX Has Been Located – Is There Hope for Quadriga Users?

March 1, 2019

The infamous QuadrigaCX case, where $190 million in user funds went missing following the death of Quadriga CEO Gerald Cotten, may be getting closer to being cracked.

According to the crypto outlet Zerononcense, that analyzed information provided by Kraken CEO Jesse Powell and MyCrypto CEO Taylor Monahan, there is a strong possibility that large amounts of Quadriga’s Ethereum (ETH) are being stored on crypto exchanges Poloniex, Bitfinex, and Kraken.

If this new research proves to be true, it means that Quadriga’s CEO used these exchanges to store his clients’ crypto instead of using cold storage wallets. Therefore, it may be possible to recover a large majority of the “thought to be lost forever” $190 million worth of QuadrigaCX user funds.

$90M in ETH Located?

Per the detailed report curated by Zerononcense and edited by James Edwards, the QuadrigaCX transaction analysis reveals shocking information as to where the deceased CEO stored user funds.

The report read:

“Based on the transaction analysis included in the report, it appears that a significant amount of Ethereum (600,000+ ETH) was transferred to these exchanges [Poloniex, Bitfinex, and Kraken] as a means of ‘storage’ during the years that QuadrigaCX was in operation and offering Ethereum on their exchange.”

Adding to this, the report noted that the individuals working at QuadrigaCX were purportedly unaware of where Cotten was moving and storing crypto.

Kraken Aiding in the QuadrigaCX Investigation

Major cryptocurrency exchange Kraken is dedicated to solving the QuadrigaCX case and finding the missing user funds. In an effort to make this happen, the exchange is urging people to listen to a series of discoveries presented in their podcast video seen below.

As stated in the video, Kraken is running a full investigation, and a group of independent researchers have been conducting blockchain transactional analysis in an effort to track down the missing funds.

Additionally, Kraken is also giving a bounty of $100,000 to anyone who provides tips that lead to the discovery of the missing $190M.

— Kraken Exchange (@krakenfx) February 28, 2019

Is There Hope for Quadriga Users?

According to Powell, if the missing QuadrigaCX funds are located on cryptocurrency exchanges, the funds can be recovered. Therefore, Quadriga users may be in luck as blockchain analysis data is pointing towards a large majority of missing funds being held on exchanges.

During the Kraken podcast, Powell said:

“This is the best hope that QuadrigaCX clients have — that Cotten was keeping client funds in other exchanges. Unfortunately, nothing at Kraken. Hopefully, others are looking. Could be accounts were created under different names so might take some real digging to find.”

Adding some positive words and giving hope to the affected Quadriga users, Powell said:

“Any exchange can look up the addresses in the report and see if any match deposit/withdraw addresses of their clients, then they need to investigate whether those clients are affiliated with QCX (beyond just having an account there).”

Do you think blockchain analysts will be able to track down and recover the missing funds on exchanges? Let us know what you think in the comment section below.

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