Quadriga Cryptocurrency Wallets are Empty

Discussion in 'HardForum Tech News' started by AlphaAtlas, Mar 7, 2019.

  1. AlphaAtlas

    AlphaAtlas [H]ard|Gawd Staff Member

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    When Quadriga's CEO, Gerald Cotten, died in late 2018, the cryptocurrency exchange lost access to millions of dollars of cryptocurrency locked away in cold storage. His window claimed that the funds would be inaccessible unless a password or recovery key was found, but according to recent reports, those funds were never there in the first place. Ernst & Young, who were appointed to the role of monitor by the Supreme Court of Nova Scotia, says that six of the "cold wallets" were emptied months before the CEO's death, and that one of the wallets stayed in use to receive Bitcoin from another exchange. They've encountered a number of other inconsistencies and roadblocks in their subsequent investigation, and now some online communities are even speculating that the CEO faked his own death in India. Thanks to Guarana [BAWLS] for the tip.

    When the monitor asked Quadriga's remaining representatives why the company had stopped depositing bitcoin into its cold wallets last spring, they were unable to name a reason. Ernst & Young says it's researching any external accounts Quadriga might have had on other exchanges.In another unsettling detail, Ernst & Young also learned that 14 user accounts had been "created outside the normal process by Quadriga," apparently using aliases and bogus funding... Speculation about what happened to Quadriga's bitcoin holdings has now reached a fever pitch. Even before Ernst & Young concluded that wallets that were purported to be Quadriga's key bitcoin reserve were actually empty, Canada's Globe and Mail newspaper published a story last week asserting that Quadriga co-founder Michael Patryn has used an alias to cover up his true identity as "a convicted felon who served time in the United States for his role in an online identity-theft ring."
     
  2. TheOne&OnlyZeke

    TheOne&OnlyZeke 100% Irish

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  3. purple_monster

    purple_monster Gawd

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    this just became my favorite story. i hope they find an empty apartment in india under one of his alias with a gun and wad of cash in a briefcase, surrounded by various passports. i LOVE IT
     
  4. seanreisk

    seanreisk Gawd

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    Ah-ha! Sounds like a good excuse to find Mr. Cotten and sign him up for some state-sponsored reparative butt-sex.

    How hard can it be to find a rich, white hipster in India?
     
  5. kju1

    kju1 2[H]4U

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    Chances are he didnt stay in India...i mean lets be hoenst that place isnt all that great. He probably moved to some small tropical island and filled it with hot naked women.
     
  6. Twisted Kidney

    Twisted Kidney 2[H]4U

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  7. haste.

    haste. [H]ard|Gawd

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    How did E&Y find out they were empty? I thought it was uncrackable - the article says analytics, but either the right people can crack it or the key wasn't "lost". I just breezed the article so may have missed something though.
     
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  8. Dead Parrot

    Dead Parrot 2[H]4U

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    Movie deal soon? Depending on who's money is missing, if Mr Cotten is still alive, he had better stay hidden and only spend modest amounts of money at any one time.
     
  9. Zarathustra[H]

    Zarathustra[H] Official Forum Curmudgeon

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    Lol. Did he fake his death and leave the country?

    Or maybe he was murdered for the bitcoin? :p
     
  10. Master_shake_

    Master_shake_ [H]ardForum Junkie

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    He "died" of Crohn's disease.

    Arrest the wife and jail her indefinitely
     
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  11. dreadcthulhu

    dreadcthulhu [H]Lite

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    So, what's the nicest country that doesn't have an extradition treaty with Canada? That would be a good place to start looking.
     
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  12. Tak Ne

    Tak Ne [H]ard|Gawd

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    I'm not even sure you'd need to crack them, If you know the addresses you could see all the transactions by examining the blockchain. Just guessing here.

    Update: Business Insider says... A previous version of this story incorrectly stated that investigators cracked Cotten's laptop and discovered money was missing. In fact, they have possession of his laptop and identified money was missing through public blockchain records.
     
    Last edited: Mar 7, 2019
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  13. dvsman

    dvsman 2[H]4U

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    I thought that the whole point to crypto was the blockchain and traceability? So if the funds were traded out to other accounts which aren't locked - you should be able to be able to see the activity right, even if you can't access / get 'write access' to it.

    But yeah, unless they have his corpse in a cooler, he's sitting on a beach somewhere with an upgrade to his wife v1.0 :-D
     
  14. IcePickFreak

    IcePickFreak [H]ard|Gawd

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    Cryptocurrency - give the finger to the MAN... until you get scammed, then the man better find that guy!
     
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  15. Slade

    Slade 2[H]4U

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    you don't need to see inside a wallet to follow the transaction trail: if the transactions don't add up correctly from other accounts, you can begin to paint a picture of what is insde.
     
  16. zkostik

    zkostik Gawd

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    It's still crypto, he has to be able to have some idiot cash it out for him. Great story indeed, I'm not a bit surprised to see something like this though.
     
  17. Wiffle

    Wiffle Limp Gawd

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    I hear the French Foreign Legion is always hiring.
     
  18. haste.

    haste. [H]ard|Gawd

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    So it was a "third party" device... makes more sense. Blockchain has it's place and I'd like to see it utilized in something other than crypto for security purposes, but yikes it is being utilized for the worst possible purposes!
     
  19. kju1

    kju1 2[H]4U

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    Its the new hotness. You can point to these kinds of things happening with all sorts of new tech.
     
  20. MMitch

    MMitch Gawd

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    Wtf... on what ? (ok I didn't read everything but I don't think there's ANY evidence of her doing anything wrong?)
     
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  21. Master_shake_

    Master_shake_ [H]ardForum Junkie

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    she is sole owner of his estate therefore party to fraud.

    it's her baby now.

    marriage is a bitch.
     
  22. SvenBent

    SvenBent 2[H]4U

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    He must have used it all into AI since he has talking windows... :clown:
     
  23. Deimos

    Deimos Gawd

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    You mean widow right? not window?
     
  24. SvenBent

    SvenBent 2[H]4U

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    Quote from the top post/news snippet: His window claimed that the funds would be inaccessible unless a password
    It's not fun when I have to explain the point.
     
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  25. Dahkoht

    Dahkoht Limp Gawd

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    The irony in these sorts of situations always amuse me.

    “FUCK THE PO-PO!!!”

    Until we need them ASAP of course.
     
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  26. MMitch

    MMitch Gawd

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    I doubt it works like that... at least I hope not.
    If you can show me evidence she knew and was part of a scheme, ok, otherwise... she's part of it as much as you and me.

    With this thinking someone who crash his car while been DUI and died would make his wife go to jail for killing the other passenger ? Wtf
     
  27. nightanole

    nightanole [H]ard|Gawd

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    Like the enron guy that off'd himself the day before the trial so his wife would get everything free and clear.
     
  28. Vaulter98c

    Vaulter98c [H]ard|DCer of the Month - October 2009

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    Came to see if anyone caught that, was almost disappointed lol
     
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  29. griff30

    griff30 I Lower the Boom!

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    There will be more like this.
    Count on it.
     
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  30. daglesj

    daglesj [H]ardness Supreme

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    Wouldn't surprise me that the 'powers that be' could pay to setup new cryptocurrency and exchanges and then purposely crash them like this to destroy public confidence in them.
     
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  31. motomonkey

    motomonkey [H]ard|Gawd

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    Which "powers that be"?

    The Man?
    The international Jewish Banking conspiracy?
    The Illuminati?
    The Deep State?
    The Rothschild's?
    The Trilateral commission?

    gotta be specific when talking about conspiracy theory, yaknow.
     
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  32. Exavior

    Exavior [H]ardForum Junkie

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    while i have no issue with cryptocurrency itself. It definitely appears to be a huge target for fraud. All you ever hear is how these companies that are suppose to be a "bank" just end up stealing all the money people store in them.

    This is were being unregulated currency bites them.
     
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  33. daglesj

    daglesj [H]ardness Supreme

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    Oh that would be 'all of them'.
     
  34. kju1

    kju1 2[H]4U

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    Um do you really think anyone has the time, energy, or money to bother with that shit? Especially not when its doing just fine imploding on its own.
     
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  35. daglesj

    daglesj [H]ardness Supreme

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    But the cost to set this stuff up is pretty minimal, let it run, screw it up get the news coverage, reduce the public's faith a bit more blah blah blah. And the reason it's imploding on it's own is...maybe...go back to my original post.

    Like rich and powerful folks (even Govt agencies) with a lot to lose have never thrown a brick into a competing pond that threatens their hold on the world order?
     
  36. kju1

    kju1 2[H]4U

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    Define minimal.
     
  37. motomonkey

    motomonkey [H]ard|Gawd

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    If it’s that easy, wouldn’t it be just as easy to co-opt crypto for “The Man”? Let’s just jump right down the rabbit hole here, if the NSA has access to some of the worlds most powerful supercomputers, they could mine crypto with idle time and use it to manipulate the market. What better way to get untraceable funds for all sorts of skullduggery than crypto? A trivial task for a government with access to that much computing power.

    Your imagination could run wild on this sort of thing, but perhaps it’s already did all the running it should for a while.
     
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  38. celeron300

    celeron300 Gawd

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    If you don't hold it... then you don't own it.
     
  39. PaulP

    PaulP Gawd

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    How do we know that the NSA didn't invent block-chain and bit-coin for this very purpose?
     
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  40. ecuador

    ecuador Limp Gawd

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    Well, if it's attached to you somehow, you don't actually need to hold it...