The mystery surrounding Canadian-based exchange QuadrigaCX gets murkier and murkier. The latest update that was reported was that the exchange had received 45 days to recover the missing funds.
The report had stated that Judge Michael Wood, of the Nova Scotia Supreme Court, said he was satisfied that a stay of proceedings first granted a month ago should be extended by just under 45 days, with the next hearing scheduled for April 18. Creditors cannot sue the exchange until the stay expires or is lifted.
Now, the widow of the deceased Chief Executive Officer (CEO) Gerald Cotten has come out with a shocking version of events. As per a news portal, she claimed that her husband used to mix his own money with the exchange’s funds in order to fulfill customer withdrawals. According to Gerry’s wife, she does not know exactly how Gerry used to operate his business/exchange, however, he used to tell her that he had to keep transferring his own personal money into Quadriga CX exchange to fund the user withdrawals last year.
The statement of the widow came into play, when an earlier audit by Ernst and Young (EY) stated that the wallets on the exchange are nearly empty.
Earlier, a report by a research group stated that there was a very strong possibility that there may be significant crypto funds (Ethereum) at the following exchanges: Kraken, Bitfinex and Poloniex. The report said, “Based on the transaction analysis included in the report, it appears that a significant amount of Ethereum (600,000+ ETH) was transferred to these exchanges as a means of ‘storage’ during the years that QuadrigaCX was in operation and offering Ethereum on their exchange.”
The report came to light when Cotten’s widow, Jennifer Robertson stated in her affidavit that Gerry Cotten may have stored some of QuadrigaCX’s funds on other exchanges.
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