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Quadriga’s Crypto Ended Up in CEO’s Accounts on Rival Exchanges

  • Report says ‘significant’ amounts transferred by late founder
  • One margin account saw over 67,000 individual transactions
Wild Crypto Market’s Traders Get Something New: FDIC Protection
Photographer: SeongJoon Cho/Bloomberg

It’s looking more and more like QuadrigaCX founder Gerald Cotten mismanaged the digital-asset exchange before he died, with cryptocurrencies from clients ending up at rival marketplaces in his personal accounts.

The latest report from Ernst & Young, which is overseeing the bankruptcy process for Quadriga Fintech Solutions Corp., paints a clearer picture of a Vancouver-based firm that lacked financial reporting and operational controls, run primarily by a founder whose actions ultimately led to its collapse, leaving hundreds of customers owed millions in cash and cryptocurrency.