Change in the plot? The $ 190 million loss of QuadrigaCX could turn into theft as a result of a sudden move of Litecoin

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QuadrigaCX was one of the largest bitcoin exchanges in Canada. It had recently been reported that its founder, Gerald Cotten, had died suddenly of Crohn's disease at the age of 30. He died in Jaipur, India, in early December 2018.

It was also reported that Cotton was the only one to have access to the cold room of the main stock portfolio. According to the latest court record, QuadrigaCX owes its clients approximately $ 250 million Canadian, or $ 190 million.

By the end of January 2019, more than 115,000 users had a positive balance on their QuadrigaCX account; the funds were divided into CAD 180 million in crypto and the rest CAD 70 million in FIAT. At this point, the division between the switch's hot and cold portfolios is unclear.

The advantages of blockchain

Using blockchain transparency, new research has made it possible to track Quadriga's cold litecoin portfolio and watch funds exit the stock market portfolio.

As a reminder, to release funds from any portfolio, you must have access to your private keys. This proves that Cotten's sudden death plot could quickly turn into theft or theft.

Even difficult, Litecoin is not the dominant cryptocurrency owned by Quadriga; this could give some clues to this mystery that could easily become another MT.Gox added to the pantheon of crypto hacks.

The investigation does not claim that Cotten is not deceased, although there is a death certificate that proves it. However, this raises many questions about the claim that the exchange "lost" $ 190 million.

The disadvantages of the blockchain

Neither if Cotten pbaded away, nor was he the only one to have access to private cold storage keys, this raises the need to find solutions to this future legacy problem.

As we have already discussed, some companies are developing solutions to this problem. One of these features is a portfolio feature that will automatically transfer funds from a portfolio if it has not been used for a period of time (for example, six months). Such a solution could have solved QuadrigaCX's situation.

Cryptographic exchange rules and regulations will be modified accordingly and exchanges will be required to secure their funds using these methods.

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