Which Brings Us To The Conspiracy Theories…
Many people, including several former Quadriga clients, have been complaining about the “convenient” nature of Cotten’s passing. When his company was taking hits from banks and legislators, he decided to fly to India for the noble cause of building an orphanage and then passed away from a disease that has a 3% mortality rate. Not to mention, cryptocurrency, after years, still remains largely unregulated in Canada. Which significantly binds the hands of officers trying to recover those funds.
In other words, if this was a last minute exit strategy hashed out by the co-founder, it really will have minimal consequences, since there are no major legislators holding these exchanges accountable. It’s like trying to find the Nigerian Prince your grandma keeps sending money to.
Despite the tasteless nature of accusing someone of faking their own death, these theories may hold some ground. Quadriga had been facing serious withdrawal issues since last October. This led to legal battles with CIBC which were supposedly funded out of Cotten’s own pocket. Moreover, the tweets leading up to the scandal continued to portray the company in control of the situation, keeping their clientele intentionally in the dark while they continued to accept their deposits. Additionally, the fact that there was only 1 private key for an exchange worth millions of dollars is frankly unbelievable. Most industry leading exchanges will employ a multi-signature wallet that requires multiple parties to access the funds in case of emergencies.
KrakenFX, a major cryptocurrency exchange that functions both in the United States and Canada has publicly announced that they are able to track thousands of wallet addresses belonging to QuadrigaCoinEx. Ultimately, the open source nature of cryptocurrency makes it easily traceable, thus allowing for funds associated with larger parties like Quadriga to be tracked using analytics software. KrakenFX has promised to publish a detailed report of their findings and urge the RCMP to take action against Quadriga.
Many believe that these revelations have exposed the cryptocurrency world for what it truly is; a fad and nothing more. However, those who understand the inner workings of this technology can see its transformational capacity. If anything, the fall of Quadriga reveals the desperate need for regulations in the Canadian cryptocurrency markets. Hopefully, through that, no other exchange will be able to pull off a ruse like this in the future.
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