QuadrigaCX made headlines after major news media outlets covered that users were not able to withdraw their funds after the CEO mysteriously “died” while on a trip to India. About $140 million worth of funds belonging to over 150,000+ traders is inaccessible.
Fortis Hospital, one of India’s premium private hospital has released details surrounding Gerald Cotten’s (CEO of QuadrigaCX) death. According to the statement,
“Gerald Cotten was admitted to the hospital on Dec. 8, 2018 at 9:45 p.m. IST (16:15 UTC) and died of cardiac arrest at around 7:26 p.m. IST (13:56 UTC) on Dec. 9, 2018”
Apart from a statement by the hospital, a statement of death and a death certificate from the Government of Rajasthan has also been released.
Previously the community believed that the CEO had died and the funds are truly inaccessible. But new findings suggest that QuadrigaCX did not have a Bitcoin and Ethereum cold wallet. According to an in-depth research by research firm “Proof of Research”, QuadrigaCX acted as a Ponzi scheme.
“It appears that QuadrigaCX was using deposits from their customers to pay other customers once they requested their withdrawal.”
Apart from that Proof of Research also pointed out that QuadrigaCX holding still has access to its funds. These latest developments have caused people to think whether the CEO is truly dead or was it just an elaborate and well-orchestrated exit scam.
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