Topic: Unofficial Quadriga Cx Thread - page 4. (Read 24365 times)

It seems they have taken this article down for some reason. I think medium censors their content and it was something in which they think will be evidence in court to what they published.

This is what I said on the other thread about this exchange but they say you can.
I can only see it happening if it was tied together with another aliment. But not on its own untreated.

Posting a backup of the Death Certificate (Spelling Error? Cottan or Cotten?)
(Did a lookup the name checks out under Cottan and shows up on the Indian Death Registry E-Search not sure on how to download a copy though.
 http://pehchan.raj.nic.in/ECertificate.aspx?OWEyMGQ3NTQ=OGQ2OGJmNmI1NTBlYWVkZGE2ODEyNTY=)

Sourced: https://www.coindesk.com/indian-death-certificate-crypto-exchange-quadrigacx-death

Second Source:

https://icoranker.com/gerald-cottens-community-comes-to-his-defense-amid-scam-allegations-gerry-wasnt-that-kind-of-guy?


Nice find, Jack from the CBC is a lot more close to the case, i'm glad they decided to hear the case imagines if they had to contact 115,000 Quadriga clients before anything could be done ....

Some questions were addressed and we learnt a few things.

Quick Summary

Physical Presence. They filed in the Nova Scotia Supreme Court since they had no actual presence in BC.

Laptop Status (Cryptocurrency):
Waddell Phillips had the laptop until now (https://waddellphillips.ca/) and an Ex-RCMP Officer tried to access the files and failed.
The laptop is now in the hands of the lawyers, since it may have 180 million dollars on it.
(No mention of trying to backup and clone the laptop before tinkering with it)

Quadriga Plans: Hopes to find the cryptocurrency in 30 days
(maybe find the bank safe with the yubikey, look for usb drives, scan the house for paper wallets the whole 9 yards)

Quadriga Cash: The 25 million is held by third party groups such as Billerfly and New Brunswick companies.
With Quadriga preparing to sell off the exchange and probably go into bankruptcy proceedings.
There may be another 11 million more they can find and access.

Quadriga Costs: Userdata, the website, getting someone to break into the damn wallet, and accounting.

Future Communication: Reddit. (... and not a Globe and Mail Paywall ...)

Privacy: To be decided, keeping client list anonymous except to relevant parties for now.

Website: Remains Shutdown until further notice by the court

Real Public Address to the Cold Wallet: Not Revealed

Legal:
Submissions to court accepted till February 25th monitor submission March 1st
Representative Council will have a hearing on February 14th if Expedited paperwork needs to be submitted by Friday.
CCCA Granted the 30 Day Legal Pause
Creditor Protection Effective until March 7th.

Props to Jack Julian for all the information.

Twitter Highlights

https://twitter.com/JackJulian/status/1092791879199010828
"Quadriga has no office and no bank account. It exists only on a piece of paper in the business registry in BC."

https://twitter.com/JackJulian/status/1092789647934148609
(Apparently lawyers for Quadriga are finding more money all the time. They got word last weekend of a bank that may be holding 11-million in
Quadriga funds.)

(https://twitter.com/JackJulian/status/1092790197123727367)
The laptop was up to now in possession of Quadriga’s lawyers in Toronto. Waddell Phillips. It was being examined by an ex-RCMP computer expert.

https://twitter.com/JackJulian/status/1092789403985104897
Lawyers for creditors like the idea of the laptop which purportedly holds the cold wallets with as much as $180-million in crypto will be secured by a court-appointed lawyer.

https://twitter.com/JackJulian/status/1092790409162559490
It’s now being transferred to lawyers acting for creditors, to eventually be placed in the hands of a court-appointed monitor lawyer.

https://twitter.com/JackJulian/status/1092793208508162049
Five million dollars were held by various New Brunswick companies. Lawyers for Quadriga now control those funds, and will be used to pay for bankruptcy proceedings and negotiate a possible sale of the Quadriga trading platform to satisfy debts.

https://twitter.com/JackJulian/status/1092796116511404032
Justice Michael Wood wants to know what Quadriga’s “ongoing expenses” are. The answer... Costs of storing and protecting the data from the website, even though it isn’t live right now. Expenses for experts who will go find the crypto currencies.

Flashed the Checks (over a stove cough with a non-explained red candle let's call it ambiance)



https://twitter.com/JackJulian/status/1092808652757626883
Discussion about how to alert potential creditors. Chiasson suggests Globe and Mail. But now they are talking about posting notices on *Reddit*

https://twitter.com/JackJulian/status/1092812724483096577
The CCAA order will include posting a notice to creditors in a subreddit. Subreddit TBA. I wonder if they know what a worm can that is...

https://twitter.com/JackJulian/status/1092813077362470912
Quadriga’s website will remain shut down until an order from the court. In order to achieve “some stability”

https://twitter.com/JackJulian/status/1092847703804002304
Back in session. Deadline for submissions to court Feb 25 about possible extension of stay etc. A report from the Monitor will be submitted on March 1.

https://twitter.com/JackJulian/status/1092848965190594561
The judge says the issue of representative council is not urgent enough to rush the timeline. There will be a hearing on that at 0930 on Feb 14, NS Supreme Court.

I have never heard of another Patryn in my entire life and it's not his real name anyway. It's Omar Dhanani, a fraudster with a long track record.

He's this guy - https://www.reddit.com/user/MikeXBT/

Who regularly popped up on r/bitcoinmarkets talking about his large positions. Looks like a yes to me.

No idea if this is a coincidence or not but if you go to:
https://coinfarm.online/position/

And put in "Patryn" in the Search User for the Bitmex positions, you will see he is a big bear at -6,300,000 position @ $3838.

I wonder if its a different type of Patryn or if Patryn is a common first/last name in the American language.

Maybe he is opening these positions using QuadrigaCX funds but a 6 figure derivatives position is not that large and you would only need around $63,000 in margin at least to open it.

This geezer is live tweeting from the court proceedings - https://twitter.com/JackJulian

They seem to be fully on board with the idea of the cold storage being locked up rather than never having existed in the first place.

https://cointelegraph.com/news/breaking-lawyers-might-sell-quadrigacx-to-settle-debts

Lawyers Might Sell QuadrigaCX to Settle Debts

"Prosecutors will get the encrypted laptop of recently deceased CEO of major Canadian crypto exchange QuadrigaCX Gerald Cotten, Canadian broadcast network CBC reports Tuesday, Feb. 5.

According to CBC, the laptop that might provide access to $190 million of QuadrigaCX customer funds will be given to lawyers. Moreover, the lawyers are considering selling the company in order to satisfy the debts."

Most times out of ten someone's 'blockchain analysis' turns out to be a load of hogwash. I'm interested to see if we hear more from Kraken about this. They're going to definitely know what's what when it comes to Quadrigacx's addresses.

It's possible we're jumping to conclusions too quickly regarding the wallet analysis that's been doing the rounds. There definitely could have been cold wallet addresses that were never used on the network to spend outputs, and those wouldn't have been included in the WalletExplorer address grouping.

No idea if you guys are frequenting the Reddit of this QuadrigaCX scandal but it seems that QuadrigaCX might of been founded by some fugitive back when it went online in 2014.

According to various posts at https://old.reddit.com/r/QuadrigaCX2/

It seems that some guy named Omar who had an alias Michael Patryn was involved in some identity theft, served some jail time and then later became a fugitive before coming into Canada. He and Cotton opened up the exchange in late 2014.

Apparently looking at the timestamps someone documented this over a year ago but it seems nobody listened until now when all this mess started.

I just got around to reading that.

I don't think they were subject to a hack of their cold storage. If so why not just own it, it's not like things get better by attempting to whether it and hope no one finds out it happened. Odds are you just get hit with a blackmail own the road from the original perpetrators, the proof would be the transaction ID. So the Blackmail would never end.

I do lean more to the falsifying of a cold wallet, especially if at no point in their legal route of registering it was necessary to prove ownership of the coins. This is a pretty big claim and at first glance resembles a Ponzi like scenario. The problem here is that they should have been able to amass a large amount of coins just in the collected trading/deposit/withdrawal fees. This would support the oddly terrifying claim that they hold less than 1000 BTC, which is less than 4% of the claimed amount.

All in all it's just a weird scenario. Quadriga was one of the sources I showed the wife when I entered crypto as a way of legitimizing it in her eyes. Don't think she remembers that after telling her about it the other day. Glad I didn't have any large losses to report in that convo.

Interesting to see what comes out of this after the 5th. It is cool to see the chain analysts going hard at this.

I've read the article. From what I gather I am assuming they were maybe hacked sometime in the past or the funds were somehow stolen.

Since the crypto market took a downturn, they probably had less customers withdrawing crypto. So by waiting for a deposit to process a withdraw it was possible to get away with it for the past year.

However I think the collapse was when the fiat withdraws had issues and then it scared most people and they finally saw the huge BTC price spread and decided to take all their cryptos out of the exchange and do basically a bank run.

Since there was more withdraws than deposits, it led to this collapse.

From what I read this is similar to what happened with one of the MtGox hacks. They got hacked, and kept silent. They decided to start a bear market since they were the major exchange and when price went from like $30 to $2 they bought back all those lost coins and remained in business.

More news :

QuadrigaCX Chain Analysis Report (Pt. 1): Bitcoin Wallets

https://medium.com/@zeroresearchproof/quadrigacx-chain-analysis-report-pt-1-bitcoin-wallets-19d3a375d389

Seriously who dies from Crohn's disease ?

https://timesofindia.indiatimes.com/Want-a-fake-death-certificate/articleshow/3218280.cms

And India isn't really the best place for food when you got IBD. 
The guy is alive or maybe someone (the wife ?) got him killed.

I've been following the thread and find it very odd that the LTC is being moved already... I think the person that did the analysis might of made a mistake and assumed it was a cold wallet instead of a hot one or it was the cold wallet to some other exchange like Bitfinex. This might have something to do since they are both affiliated with CryptoCapital actually.

I am also surprised that nobody has yet been able to find their BTC or ETH cold storage address since those should be fairly easy to locate since they probably had the most transactions as say LTC.

Somebody pointed out that the wife said that QuadrigaCX was keeping some of their coins on other exchanges, this might explain the LTC coins moving.

Also the "Giving $100K to 2 dogs" instead of keeping proper cold storage practises has many people upset who lost their life savings thanks to Quadriga. Basically MtGox all over again.

Cryptomeds also said that he have collected txs, wallets and other related information that could be used to find the Quadriga cold/hot wallet address. He also mentions Quadriga connection with Cryptocapital, which also has a connection to Bitfinex (no surprise), CEX.io, and so on. If anybody want to read about Cryptocapital, here's a good start[1].

[1] https://bitcoinexchangeguide.com/cryptocapital-co-may-be-cryptos-black-swan/

Interesting Tweet from Kraken's CEO:

---

There's also coin movement from Quadriga's supposed LTC cold wallets: https://old.reddit.com/r/QuadrigaCX2/comments/amg266/quadrigacx_litecoin_cold_wallet_address_found_and/

Compared to the broader market, QuadrigaCX was quite small. I'm not surprised the bankruptcy didn't affect the price much.

As far as lost coins, you're right. Just like Satoshi said, they're a donation to holders because taking coins out of circulation drives prices up. I think all exchange hacks cause the same effect because even if hackers steal coins, they aren't very fungible afterwards.

If the ranking row is based on numbers of $$ I guess coincheck hacked has the second largest lost for 500m$ lost and this hack is the 3rd.

Now I can't smell that this issue had cause more trouble on the current price of BTC, yet I think this will cause to spike since that lost BTC will remain lost forever and has an impact to the circulating supply.

I've used this exchange in the past and basically stopped using it due to the delayed withdraws and also I was worried about their solvency issues when they screwed up one of their ETH contracts and they've sent something like 60K (from what I can remember) to a smart contract and as you know you can't withdraw from a smart contract, so a large amount of ETH is basically locked forever unless the ETH devs fork it to recover the funds which I don't see happening. They claimed to hold enough in reserve to cover these 60K basically from their trading fees but it was still too risky incase everybody panicked and decided to withdraw all their ETH.

There was also the issues of not knowing their physical office address and how they had the "Quad Bucks" on their ToS instead of actual Canadian dollars. When you login into their website, and you want to sell BTC for CAD, there was no BTC/CAD instead it was XBTCAD and I always found it strange.

However they were I think the 2nd canadian Bitcoin exchange ever, after CaVirtex and they were actually pretty good prior to 2017 or so. They had enough liquidity, website didn't have much outages and you "eventually" got your money. They really should of got better management and they would of probably still stayed in business till today. Its very sad that it has lead to this.

Since they lost almost $200 Million, I am assuming this is the 2nd largest bitcoin exchange hack/theft/loss ?