The Quadriga CX story has got one more twist. Analysis done by experts suggests that the exchange was moving Ether to larger exchanges throughout January.
The story of Quadriga seems to be getting more and more complicated with every passing day. A number of experts, analysts, and even some amateurs are out in the wild to find out what actually transpired at this Canadian cryptocurrency exchange. The more they dig into it, the more twits and turns come to the story. The latest twist came yesterday when some cryptography experts who’re adept at scouring public blockchains to extract the evidence seemed to suggest some other possibilities of the case. One among them is Emin Gün Sirer, a Cornell University professor. And according to him, what’s happening at Quadriga doesn’t make any sense.
“The Quadriga story doesn’t make sense. The one amazing thing about blockchains is that anyone can audit, in essence, any company. If the funds are frozen and the cold wallet is inaccessible, it should be possible for the exchange to provide the cold wallet addresses so their claims can be verified with the help of the blockchain.”
Also there are firms like Elementus, which can tell to whom certain wallets holding any particular coins belong after analyzing the blockchain patterns. And according to Elementus, they couldn’t find any Quadriga cold wallets holding Ether – one of the cryptocurrencies that are missing. Instead, their analysis shows that Quadriga was instead moving Ether to other larger exchanges. This could mean two things:
- Either Quadriga had set up automatic transfers to other exchanges when balances in their hot wallets reached a certain limit
- Or there was some fishy business going on.
Kraken CEO Jesse Powell has confirmed that his exchange holds some Quadriga balances. However, no similar confirmation has been made by other major exchanges until now.
Lawyers for Quadriga account holders to be appointed on 14th of February
The legal front of this story is also continuing to unfold at the same time. On 14th of February when world will be celebrating Valentine’s Day a judge at Halifax Supreme Court will be appointing the lawyers for Quadriga’s account holders. This is being done after some account holders said that they want Bennett Jones LLP and McInnes Cooper to represent them in Court.
We’re keeping an eye on the whole story and will continue to provide you updates about it, so keep an eye on our updates.