As per the Kraken announcement in a blog post, this famous Cryptocurrency exchange has posted a $100,000 recompense for detecting the main Canadian crypto exchange QuadrigaCX’s lost funds.
Kraken will soon reward the company with $100,000 in either digital or fiat currency for tips that might lead to the discovery of the missing assets. Kraken notes in the statement that it might end the reward program at any time.
QuadrigaCX has faced monetary trouble following the unexpected death of its originator, Gerry Cotten, in December 2019. After that, Quadriga was not capable of accessing its cold wallets, where it kept most of the assets, as Cotten was seemingly solely accountable for the corresponding solutions and wallets.
Quadriga supposedly only has CA$375,000 ($286,000) in cash, though it has CA$260 million ($198,435,000) to its customers. Facing bankruptcy, the exchange has required creditor protection in the Canadian court. QuadrigaCX has faced monetary trouble since its CEO Gerald Cotten allegedly died of problems from Crohn’s disease in December 2018.
It was also reported that Vancouver-based QuadrigaCX had been having problems accessing $16.3 million of its funds since January when CIBC froze many accounts belonging to the exchange’s payment company, Costodian Inc., and its owner, Jose Reyes.
The bank allegedly stopped the accounts due to its inability to classify the owner’s funds. The latest development is another step in the multifaceted and good way to the direct court for Ripple investors, four of whom initially brought distinct claims against the business over its unproven safety law violations.
Regarding the legitimacy of CIBC’s actions in freezing the accounts, Judge Hainey concluded that he is “not in a position on this record to make any determination as to CIBC’s possible liability for doing so,” adding:
“Accordingly, it would be inappropriate for me to extinguish any liability that CIBC may have for freezing the accounts in the absence of an evidentiary record that establishes that CIBC has no liability.”
As previously reported, Cotten might have stored the exchange’s remote keys on paper in a safety deposit box. In an interview on the True Bromance Podcast in February 2014, Cotten clarified that the best method to keep remote keys is to print them off and stock them offline in a secure payment box. Cotten later than mentioned in his statement:
“Essentially we [QuadrigaCX] put a bunch of paper wallets into the safety deposit box, remember the addresses of them. So we just send money to them, we don’t need to go back to the bank every time we want to put money into it. We just send money from our Bitcoin app directly to those paper wallets and keep it safe that way.”
“Particularly, every speech was inactive since April 2018, and the mainstream of their conventional BTC was moreover directly from the QCX hot wallet or a wallet 1 transmission detached from the hot wallet,” u/dekoze commented, stating that
“With all this information, we can confirm that these 5 addresses are a portion of the QCX cold wallet addresses.”