Blockchain Analysis Ties 5 Bitcoin Addresses to QuadrigaCX Exchange

Blockchain watchers have identified a group of bitcoin addresses that likely belong to one of the so-called cold wallets of failed crypto exchange QuadrigaCX.

The discovery is notable in light of QuadrigaCX’s claim that it has been unable to access these wallets – which held the lion’s share of the $190 million owed to customers – since the death in December of CEO Gerald Cotten. In court filings, the company has said Cotten had the sole responsibility of moving funds from the exchange’s “hot,” or active, wallet to offline “cold” storage.

But Quadriga did not share its cold wallet addresses, driving many researchers to try to trace transactions to determine which wallets these were, as well as whether they truly contained the $136 million in cryptocurrencies, including about $92 million worth of bitcoin, said to be held offline. (Another $53 million of customers’ fiat currency has been held up at payment processors.)

A clue came on Tuesday, from Ernst & Young (EY), QuadrigaCX’s court-appointed monitor in the creditor protection case. In its first progress report to the Canadian court, EY revealed that on Feb. 6 Quadriga had mistakenly transferred 103 BTC (around $350,000) to the “cold wallets which the Company is currently unable to access.”

Internet sleuths then found a group of addresses that had received multiple small transfers on that date totaling 104.335 bitcoin – nearly the same amount mentioned in the report. Prior to this, these addresses had not seen any transactions since April. ..Read More..

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