Recent evidence reveals that QuadrigaCX, a Cryptocurrency exchange, may have stored a huge quantity of Ethereum (ETH) in another crypto exchanges. The revelation was made by ZeroNonCense, a crypto research and consulting platform, who gained such evidence from Kraken CEO Jesse Powell and MyCrypto CEO Taylor Monahan.
According to the author of the report, he “believes that there is a very strong possibility” that around 650,000 ETH belonging to QuadrigaCX were stored on the Kraken, Bitfinex and Poloniex crypto exchanges during the QuadrigaCX’s operations. The report published also states that QuadrigaCX having accounts in all the above-mentioned exchanges is proven and an established fact and the funds were valued more than $100 million at the time the funds were sent from QuadrigaCX.
In the previous month, it was reported that the cryptocurrency exchange QuadrigaCX had suddenly lost around CA$190 million dollars ($145 million) in digital assets after the sudden death of its founder Gerry Cotten.
The firm further explains that as the affidavit from Cotton’s widow had stated, neither Jennifer Robertson, the founder’s widow nor any other individual related with the exchange had any information involved with respect to storage of such crypto assets by Gerry Cotten.
Though Robertson had also claimed in the affidavit that Cotton would have stored a part of QuadigaCX’s funds on other exchanges, she was not aware of the exact locations on where they were stored. According to the report of Ernst & Young, a Big Four audit firm, the exchange’s cold wallets were not used and were lying vacant since April 2018, also gives the justification that the funds were pulled out and stored in the above-mentioned exchanges.
Further, the report also states that if QuadrigaCX’s funds actually exist in the stated exchanges, their recovery would be important and would allow the exchange to regain its solvency status and restart their operations.
Last month, reports were published that the Canadian banks were hesitating with respect to their interest in managing the assets of the insolvent cryptocurrency exchange, QuadrigaCX, due to money laundering issues.