Kraken offers $100,000 to anyone who will help solve the QuadrigaCX Mystery!
The suspicious death of QuadrigaCX’s Founder, the so-called loss of private keys giving access to $190 million worth of Crypto would be one of the biggest crypto scams in recent years.
We talked about it in this article https://bitcoincryptoadvice.com/canadian-crypto-exchange-quadrigacx-lost-access-to-over-190-million-in-crypto-funds, a story as bad as the Mt Gox story (a crypto exchange that went bankrupt after a so-called suspicious hacking and fraudulent activities by its CEO Mark Karpelès who went to jail in Japan for his actions.
Kraken, a cryptocurrency exchange, has announced that it would offer a reward of up to $100,000 to anyone who could solve the most outstanding case of blockchain technology and crypto-currencies this year: the situation of QuadrigaCX.
The company has published an article on its official blog this Thursday, February 28, 2019 with all the details.
There are also interesting videos to watch on their Youtube page where Jesse Powell, CEO of Kraken, talks about their investigation and their idea on this case that looks a lot like a scam.
Is this a nice exit scam from a crypto exchange gone with the money claiming the death of its founder or was this an assassination, who knows, by another person to recover the funds.
A lot of suspicious elements in this story and Kraken decided to conduct the investigation in order to solve this very suspicious story.
Especially that thousands of people have lost their money and their cryptocurrency on this exchange, Jesse Powell, the CEO of Kraken, wants to solve this story that gives a very bad images of the crypto exchanges with a lot of people losing their money or life savings like with the Mt Gox hack in 2014.
Detective Jesse Powell has done some research, he even hired external investigators to track QuadrigaCX’s crypto wallets and the results of the investigation are indeed worrying.
The suspicious death of QuadrigaCX’s founder.
We start with the suspicious death of the founder of QuadrigaCX in India, Gerry Cotten.
He would have died in a hospital in India, the facts indicate that he already had health concerns related to his stomach and that India was particularly a destination to avoid.
He died in a hospital, the body was then transferred back to his hotel…
A strange thing to send back a body to a hotel and not to keep it in the hospital or to send it back to Canada.
The hotel would have then looked for an embalmer and would have found one which would have agreed to take care of the body of the deceased despite this very bizarre situation.
There was therefore no autopsy after the death either.
Users of the exchange were warned a month after the so-called death of the founder, in the meantime, users continued to deposit cryptocurrencies on the exchange…
Why his wife waited almost 7 weeks to stop the crypto exchange activities.
This is the first very shady aspect of this case, nobody then saw the body then.
There is no crypto cold wallet for this exchange!
The second very disturbing aspect is that QuadrigaCX stated that the founder had the private keys for the cold crypto wallets and that funds were not accessible by the company, about 190 million Dollars!
But, as indicated by Jesse Powell in the videos on the Kraken Youtube channel, it is easy to find the cold wallet of a crypto exchange. track the withdrawals and deposits made from the customers wallets which generally lead to a cold wallet containing a lot of cryptos!
Except that, for QuadrigaCX, there is no cold wallet!
It seems that the QuadrigaCX’s funds have been sent to crypto wallets on other crypto exchanges like Kraken, Bitfinex and Poloniex.
Someone has put together the ethereum adresses of QuadrigaCX and reveals where are the cryptocurrency funds, read his article: https://blog.zerononcense.com/2019/02/28/quadrigacx-ethereum-storage-found
Researcher ProofofResearch, aka James Edwards, who has been working on this case since the beginning, found irrefutable evidence that QuadrigaCX had accounts on Kraken, Bitfinex and Poloniex and a total of 649,708 ETH were collectively sent to these exchanges.
Why funds were sent to other exchanges, normally it is not a normal practice for a crypto exchange as Jesse Powell points out precisely.
QuadrigaCX may have done it either to play with users funds and earn money, or just to store its crypto elsewhere than on their exchange servers.
Remember that, in the past, QuadrigaCX had lost access to 60,000 Ethereum tokens in a smart contract.
The crypto exchange ended up with a huge debt to be filled and the fact of having sent its funds on other exchanges was perhaps to recover this loss and refund the users.
But the bull market in 2017 can have made the debt even more important and difficult to repay.
There are many suspicious elements in this case, not to mention the profile of the co-founders who would have met while they were trying to scam each other and would have had the idea of creating a cryptocurrency exchange.
Michael Patryn does not look that clean either.
There was no cash management within the company, even if the company was small, given the amounts, it should have had a strict management of incoming and outgoing funds.
With all these elements, the Quadriga affair seems to be the new Mt Gox…
The investigation will perhaps allow us to know if the founder is really dead, or if he is hiding somewhere.
If it’s an exit scam, it might be a way to to escape too much debt that the exchange could not repay or just to hide waiting to cash out the cryptos on these wallets.
That’s why Kraken offers $100,000 to anyone who could help solve this case.
If you have any information, you can go to https://qcxtips.com and give the information you would have about this case.
You may win the $100,000 reward!
Jesse Powell also asks if the FBI, the Canadian Police or any other institution that seeks to elucidate the QuadrigaCX mystery to step forward.
We will see in the future if Kraken or the Police can elucidate this case and maybe allow crypto exchange customers to recover their money and cryptocurrency!
