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QuadrigaCX Swirls In Controversies After Death Of CEO, Founder

ยท 06 Feb 2019 in Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

The cryptocurrency exchange QuadrigaCX has been involved in different controversies during the last few days. Back in December 2018, the owner of the exchange died in India after being diagnosed with Crohn’s disease. Nevertheless, after this issue, the exchange claims that it does not have the necessary funds to repay investors on its platform.

QuadrigaCX Surrounded by Controversies

The CEO of the cryptocurrency exchange QuadrigaCX, Gerald Cotten, died and left some unsolved problems. The first thing that some news sites questioned is the fact that Mr. Cotten changed his will just 12 days before his death. In his will, the CEO listed substantial assets.

Due to the fact that Cotten was the only one in control of the private keys of the funds managed by the exchange, the company claims that they do not have access to $150 million in digital assets.

Users at the platform could deposit cash or virtual currencies and use the trading platform. The company had 363,000 users of which 92,000 had account balances. There were several cryptocurrency users and customers of the platform that are waiting for an answer about what happened with their assets.

On the matter, the exchange commented:

“For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us.???

Another issue that arose is related to Michael Patryn, the Co-Founder of QuadrigaCX. According to different reports released on social media, Patryn is, in fact, Omar Dhanani. Dhanani was convicted several years ago of fraud and for operating an online marketplace for identity theft in the United States.

The interesting thing about it is that Mr. Dhanani (Patryn) would have access to customer identification documents. If the rumours turn out to be real, Dhanani has been managing customers’ identification data after being convicted for running an online marketplace for identity theft.

Cryptocurrency exchanges have usually been attacked and affected by different hacks. However, this time is different, since the owner died a few months ago. Users and customers are still waiting for their virtual currencies and for answers about what happened to them.  

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