Everyone has said their piece about the missing C$190 million which QuadrigaCX, a Canadian cryptocurrency exchange claims to be unable to access. This time around, Brian Armstrong, CEO, and co-founder of Coinbase exchange has revealed his company’s findings. Armstrong is of the opinion that QuadrigaCX hadn’t planned on an exit scam.
Coinbase Carries Out Internal Research on QuadrigaCX
In a series of tweets published on February 21, Brian Armstrong stated that Coinbase has done its own internal research. They had also checked out the blockchain analytics to see how they could help. The CEO, however, outlined that the conclusions arrived at, are merely based on speculations and they could be wrong.
According to the co-founder, QuadrigaCX has been in operation since 2013. As such, if they were planning on an exit scam, they would’ve looked for a better way to do it. Coinbase also discovered clusters of cold store wallets which were manually managed. The funds held within the wallets had been moved in early 2018.
QuadrigaCX Suffered a Major Loss Before Funds Were Moved
Before funds were moved to cold storages, the exchange had suffered a major bug which costs multimillion of dollars. Armstrong added that though a loss had been suffered, the company still tried to keep the exchange running. He attributed the latter to the pattern with which funds were sent out from the cold store.
However, liquidity finally dried out in 2018 due to the bear market. The co-founder also suggested that this was caused by mismanagement of funds and the exchange may have tried to cover it up. The CEO added that some members of the company may have been aware that they are running low on funds.
According to Armstrong;
If so, then it’s possible that untimely death of their CEO was used as an outlet to let the company sink.
Canadian Exchange Takes Advantage of CEO’s Death to Cut Losses
In Armstrong’s opinion, the death of Gerad Cotten, CEO of QuadrigaCX only gave the exchange one more reason to cut losses and claim that access to the wallet is lost. He added that before the CEO’s death, the exchange had been facing withdrawal challenges which escalated in mid-2018.
Asides Coinbase’s investigation, members of the crypto space have carried out their own research. BTCNN on February 13 informed of the Monitor’s report which reveals that the exchange had sent CAD $468,675 worth of bitcoins to its cold store wallet. A report on February 9 also revealed that prior to the CEO’s death, almost $1 million worth of ethereum had been moved from the exchange.