Canada’s largest crypto exchange QuadrigaCX lost more than $190 million worth of user funds and is unable to reimburse its users.
As of Jan. 31, 2019, there were roughly 115,000 users with balances signed up on the exchange, with $70 million CAD in fiat and $180 million CAD in crypto owed overall, according to the filing.
There is a possibility that some of Quadriga’s funds are being stored on other exchanges, though this has not been confirmed, she said.
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Cotten reportedly died of Crohn’s disease in Jaipur, India in early December 2018. The exchange announced his death earlier this month. A death certificate was included in the list of exhibits.
The founder seemingly had sole control or knowledge of Quadriga’s cold storage solution.
However, crypto users leveraged on of the major features of blockchains: their transparency and some of them noticed movement of certain QuadrigaCX held coins on litecoin blockchain. Rumors of possible fraud and fake death are circling around, especially as India is apparently known for this type of scam: obtaining a death certificate in India is just an ordinary business transaction as this Reddit post claims:
“How To Get A Fake Doctor’s Note In India
How to Buy Your Own Death Certificate in India
Want a fake death certificate?
Businessman jailed for faking his own ‘brain fever’ death in India to pocket £1m life insurance to clear his family’s mounting debts
Sanjay Kumar, 45, claimed he had died and had been cremated in Delhi, India
But Kumar was alive in India obtaining a fake death and cremation certificate
Kumar- born in India but a British citizen with dual nationality – flew to Delhi on business trip on 3 November, 2011.
He later emailed his wife Anju Kumar, 46, telling her he had fallen seriously ill and had been taken to hospital.
By 26 November, mother-of-three Mrs Kumar received an email, informing her that Sanjay had been killed by a ‘brain fever’ and cremated.
Has anyone actually seen the QuadrigaCX CEO’s body?”
If this winds up to be true, QuadrigaCX CEO might have pulled the most creative crypto theft hitherto. World of cryptocurrencies never ceases to amaze. It is also a wealth of learning opportunities about responsibility and personal accountability: outsourcing the care of your money to third parties will always expose you to fraud and scam risk. As you can, people are not stopping at anything to make themselves rich at your expense. Luckily, there is a cure: just hold your coins under your own control, make sure that that slot on the blockchain that displays your coins can be unlocked only with a private key you control.