Ever since QuadrigaCX CEO Gerald Cotten died, clients have been trying to get their money back. The Vancouver-based exchange even claimed to have opened a teller window in Laval, Quebec for those who wished to withdraw cash—however, the system stopped functioning as Quadriga filed for bankruptcy, WSJ reports.
QuadrigaCX claims the $190 million in funds that had been stored on a cold storage became inaccessible after Cotten’s death. According to the researchers, though, public transaction records suggest the funds might have disappeared. The cash pickup window might have served to funnel money away; how much has disappeared in that manner remains unknown since no accounting records were kept.
WSJ claims between $10.1 million and $24.7 million was moved from Quadriga accounts. Nearly all of the ether held by Quadriga is gone, with almost a fifth of the funds moved to ShapeShift—an exchange that didn’t adopt anti-money laundering rules until late last year. ShapeShift used to allow transactions to remain anonymous. Quadriga-associated wallets exchanged ether into bitcoin and other cryptocurrencies and transferred the tokens to different accounts and exchanges.
Some claim the fact Quadriga used ShapeShift should have already been suspicious due to ShapeShift’s high transaction costs.