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Where is the 'Missing' $150 Million? Crypto Exchange QuadrigaCX's Fiasco Gets Wierder with New Research

According to a cryptocurrency researcher with an online alias “ProofofResearch,” QuadrigaCX may not have a Bitcoin cold wallet nor $150 million in crypto.

In a research paper, Zerononcense editor ProofofResearch stated that based on the evaluation of the company’s 31 Bitcoin addresses, no evidence to prove the existence of a cold wallet for QuadrigaCX was found.

No Bitcoin and Ethereum Cold Wallets

On February 4, as CCN reported, MyCrypto CEO Taylor Monahan discovered that QuarigaCX does not have an Ethereum cold wallet which stored user funds.

Monahan evaluated three main Ethereum addresses used by the exchange and no evidence was found to support that the addresses were used as the cold wallets of the exchange.

Speaking to CCN, she said that one wallet containing 500,000 transactions still needs to be analyzed but it likely is not a cold wallet as well.

“I’m seeing NO indication of Quadriga ever having cold/reserve wallets for ETH,” Monahan said.

The research of Zerononcense similarly discovered that no evidence was found to prove that the exchange has a Bitcoin cold wallet.

In an affidavit filed with the Nova Scotia Supreme Court, Jennifer Robertson, widow of QuadrigaCX CEO Gerald Cotten, said that around $90 million worth of Bitcoin was lost in a cold wallet that was solely controlled by the CEO.

“The normal procedure was that [QuadrigaCX founder and CEO Gerald Cotten] would move the majority of the coins to cold storage as a way to protect the coins from hacking or other virtual theft,” the affidavit obtained by Coindesk read.

However, ProofofResearch explained that following the analysis of the addresses and transaction IDs for Bitcoin withdrawals and deposits, it is clear the exchange does not have a cold wallet which was supposedly used to store user funds.

The researcher wrote:

Based on the analysis of dozens of aggregated wallet addresses and transaction IDs for bitcoin withdrawals and ...
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