The wallets were deemed inaccessible after the founder of the exchange died in 2018, as he was solely responsible for the wallet’s private keys.
Five wallets linked to the former Canadian cryptocurrency exchange QuadrigaCX, previously considered inaccessible, have just been spotted moving around $1.7 million worth of bitcoins after years of dormancy.

Crypto researcher ZachXBT alerted the crypto community in a tweet on December 19, highlighting the five wallets that transferred around 104 Bitcoins
Bitcoin

tick down
$16,831

on December 17 to various wallets.

Blockchain records show that wallets have not sent BTC since at least April 2018.

QuadrigaCX, once the largest crypto exchange in Canada, filed for bankruptcy in April 2019 after the death of its founder and CEO Gerald Cotten, who was solely responsible for the private keys of the exchange’s wallets, in December 2018.

Around 155,000 exchange users owed up to $200 million in crypto at the time of bankruptcy.

In February 2019, a report by Ernst & Young – the Big Four accounting firm that oversees the stock exchange’s holdings – said that on February 6, 2019, QuadrigaCX accidentally transferred approximately 103 BTC to cold wallets, including only the late Cotten. had access. The total is almost identical to the amount of bitcoins that was just moved.

At the time, the company said it would work with management to recover cryptocurrency from cold wallets.

Related: The Regulatory Fate of Crypto Will Be Decided in the Coming Year

The mysterious death of the founder and CEO of QuadrigaCX, followed by the stock market crash, had sparked conspiracy theories that the founder had faked his own death as part of a fraudulent exit scam.

The story was the subject of a Netflix documentary in 2022.

In 2014, years before his death, Cotten said in a podcast that the best way to keep private keys was to print them out and keep them offline in a safe, and revealed that the exchange keeps his keys. offline in the company vault. at a bank.

It is unclear if BTC’s move is related to Ernst & Young’s recovery efforts. Cointelegraph contacted the company for comment, but did not immediately receive a response.

Source: CoinTelegraph

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