Brief Summary of Findings Below are the findings made by the author of this report:
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 appears the number of bitcoins in QuadrigaCX’s possession are substantially less than what was reported in Jennifer Robertson’s (wife of allegedly deceased CEO and Owner Gerry Cotten) affidavit, submitted to the Canadian courts on January 31st, 2019. At least some of the delays in delivering crypto withdrawals to customers were due to the fact that QuadrigaCX simply did not have the funds on hand at the time. In some cases, QuadrigaCX was forced to wait for enough customer deposits to be made on the exchange before processing crypto withdrawal requests by their customers. After completing the analysis, it is the author’s opinion that QuadrigaCX has not been truthful with regards to their inability to access the funds needed to honor customer withdrawal requests. In fact, it is almost impossible to believe that this is the case in lieu of the empirical evidence provided by the blockchain.
I am a brap lover and connoisseur, user. But I just love the truth too.
Aaron Murphy
Gerry Gotten faked his death in India, the probably flee somewhere like Philippines or Thailand to live under a false identity.
His wife will join him in a year or two.
Logan Hall
Now just imagine what would have happened if Bitcoin had anonymous transactions. Transparency is a wonderful thing.
Tyler Flores
>After analyzing the cluster address, there is no indication that QuadrigaCX ever held a substantial amount of capital (>100 $BTC) in their possession.
>The key takeaway from the deposit information provided by customers is that QuadrigaCX more than likely never held enough $BTC to account for the customer funds. In the next section, the customer withdrawal information related to $BTC transactions on the exchange reflect that QuadrigaCX was clearly re-routing payments from customers to satisfy withdrawal requests from other customers on their exchange, effectively operating a shell exchange or a ponzi.
Holy shit it was a Ponzi all along!
Gabriel Phillips
Poor leafs
Jeremiah Hughes
I didn't know that. Honestly, I like the smaller version better, whichever is real.
Yes. Paying your outstanding withdrawals with new customer deposits is like the literal definition of a Ponzi scheme.
It blows my mind that Quad was a scam from the very beginning. But it gets even more fucked up:
