The funds of QuadrigaCX presented a mystery - coins don’t disappear without a trace on a public blockchain. But the latest report of Ernst&Young, the monitor and bankruptcy custodian on the case, reveals another possible reason for the large-scale losses. Apparently, the late co-founder of the Canadian exchange, Gerald Cotten, had sole custody of the funds and used fake accounts to make risky bets.
“User Cryptocurrency was not maintained exclusively in Quadriga’s hot and cold wallets. Significant volumes of Cryptocurrency were transfe...