Report: Quadriga CX Could Have Lost $145 Million of Customers' Money

After the death of Quadriga CEO Gerald Cotton, client’s cryptocurrency “hung” on the cold wallets of the exchange. This is the platform’s version, but one study claims that Quadriga actually does not have this money.

In the middle of last month, the Quadriga crisis erupted. Herald Cotton, CEO of the exchange, died and took with him the passwords and access to the cold wallets of the platform. According to Quadriga, they contained over $145 million in cryptocurrency. This money belongs to customers, and they cannot receive them.

Crypto analyst James Edwards claims that in fact the Quadriga CX never owned these cool wallets. The expert investigated the transaction of the exchange and failed to obtain any evidence that these wallet addresses belonged to the platform.

As stated in the Edwards study on Zerononsence, in the past it is possible that the Quadriga CX kept substantial savings on cold wallets. But now their balance is extremely small. Currently, the exchange keeps the most money in hot wallets, that is used for transactions processing.

Users also doubted the Quadriga statements. Some of them do not even believe in the death of Gerald Cotton. But on Thursday, Indian Hospital Fortis Escorts published evidence of the CEO’s death. According to the medical institution, Cotton was brought to the hospital in critical condition, and in fact, the doctors were powerless. On December 9, the CEO died from complications caused by Crohn's disease.

Jennifer Robertson, the wife of Cotton, argues he did not leave a will, as well as passwords to cold wallets. But Bloomberg journalists say the opposite. Allegedly, they got acquainted with the documents confirming that Cotton made a will 12 days before his death. In it, Robertson is listed as the sole heiress of the assets and the sole executor to his estate.

Quadriga customers are already preparing lawsuits against the exchange.

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