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.
@QuadrigaCoinEx What is happening with QuadrigaCX? I have bitcoin and cash on your exchange that I would like to access…..
— Curtis Murphy (@LTC_Leprechaun) January 30, 2019
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.
QuadrigaCX case Update: Co-founder Michael Patryn has been a using a fake name. His real name is Omar Dhanani who was convicted of fraud (operating an online marketplace for identity theft) in the United States and was released in 2007. Identity not SAFU pic.twitter.com/wHRDgWsci4
— Boxmining (@boxmining) February 5, 2019
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.