Crypto enthusiasts, customers of QuadrigaCX exchange, and lovers of good drama have all gathered to watch a story unfold. $150 million worth of cryptocurrencies which could’ve been refunded to investors is nowhere to be found. But could it be lying somewhere or is it a figment of our imagination? Who knows. Here are three reasons why we may not be too quick to believe the exchange, just yet.
Michael Patryn is Rumored to Have Been Convicted
Reportedly, rumors are circulating that Michael Patryn, Quadriga’s Co-founder is also Omar Dhanani, a convicted scammer. They may share different names, but they are purportedly the same person. In 2005, Dhanani pleaded guilty to a crime relating to identity theft.
On the other hand, Stephen Palley, a lawyer pointed out that Dhanani had also used the name Omar Patryn during a forfeiture case. The name Omar Patryn was later used to open a company, Midas Gold Exchange.
Nonetheless, even if this allegation is true, a court may not hold it against the co-founder. However, there’s the reputation of the person to consider given that their name has been linked to a past crime. And like they say, the past has a way of repeating itself even though people can change. So at this point, we’re very confused.
A Month Before CEO’s Death is Announced
While documents show that Gerald Cotten, QuadrigaCX’s CEO death occurred on December 9, the exchange only revealed this to their customers a month later. Our interest has been piqued if the $150 million exists or they are taking advantage of a good opportunity since there is someone to pin it on.
Let’s face it! If the CEO had put up the best security measures to ensure that his eMail and laptop are not susceptible to attack, then who can gain access to determine there are funds in the cold storage? A recent report by Bloomberg revealed that some experts had been brought in to hack into the computer but to no avail.
Also, Taylor Monahan, the CEO of MyCrypto after investigating some transactions on the exchange said: “I see NO indication of Quadriga ever having a cold / reserve wallets for ETH..”
On a more brighter note, the name of the late CEO’s has been wrongly misspelled on his death certificate. This raises another question as to if it’s the same Gerald CottEn or another Gerald CottAn we’re talking about.
Exchange Faces Banking Problems
QuadrigaCX had faced a delay in processing payments in October due to a court issue with the Canadian Imperial Bank of Commerce. The bank had frozen their funds in January 2018. According to the financial institution, they were unable to determine the owners of the funds. Moreover, some customers were asking for a recall after transactions were completed.
As a consequence, the Ontario Superior Court of Justice was asked to take possession of it and $22 million owned by the exchange was frozen. It was later released to them since the exchange won the case in court. While the case had been won, whatever may have triggered the bank’s suspicion about the company’s holding at that time, could have a role to play here.