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December 21, 2022

Five Bitcoin Wallets Linked to Collapsed Crypto Exchange Mysteriously Awaken After Years of Inactivity: On-Chain Data

By Conor Devitt

Five Bitcoin wallets associated with the now-defunct crypto exchange QuadrigaCX moved 104 Bitcoin (BTC) worth $1.75 million for the first time in years, according to an on-chain researcher.

Pseudonymous on-chain sleuth ZachXBT points out the development to his 339,400 Twitter followers.

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The on-chain researcher notes one of the wallets sent about 69 BTC ($1.16 million) to the Bitcoin mixing service Wasabi.

A crypto mixing service is a tool that pools the digital assets of many different users and blends them together in an effort to obfuscate the source and the owners of the funds.

QuadrigaCX’s CEO and founder Gerald Cotten reportedly passed away in 2018 in India from health complications arising from Crohn’s disease.

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After Cotten’s death, QuadrigaCX’s management claimed that it couldn‘t access a large amount of digital currency reserves held by the exchange on behalf of its users.

The company alleged that Cotten was the only one who held the passwords to the exchange’s cryptocurrency wallets holding $137 million in digital assets.

The 30-year-old’s sudden death led to the abrupt shutdown of the popular Canadian crypto exchange which reportedly had 115,000 active traders.

Following the announcement of Cotten’s death and the loss of millions in crypto assets, rumors swirled that Cotten had staged a hoax in order to run off with the funds.

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Featured Image: Shutterstock/Kiselev Andrey Valerevich/Sensvector

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