Five wallets associated with Canadian cryptocurrency exchange QuadrigaCX that were previously thought to be out of reach have just been spotted moving around $1.7 million worth of bitcoin after years of hiatus.
Crypto researcher ZachXBT alerted the crypto community in a Twitter post on December 19, highlighting that five wallets had transferred around 104 Bitcoin (BTC) to different wallets on December 17.
Blockchain records show that wallets have not sent BTC since at least April 2018.
Five wallets attributed to QuadrigaCX unexpectedly moved ~104 BTC on December 17th for the first time in years.
— ZachXBT (@zachxbt) December 19, 2022
Once Canada’s largest crypto exchange, QuadrigaCX declared bankruptcy in April 2019 following the December 2018 death of its founder and CEO Gerald Cotten, who was solely responsible for the private keys of the exchange’s wallets.
155,000 users of the exchange owed up to $200 million in cryptocurrencies at the time of its bankruptcy.
In February 2019, a report by Big Four accounting firm Ernst & Young (EY) – a company monitoring exchange assets – claimed that QuadrigaCX accidentally transferred around 103 BTC on February 6, 2019 to cold wallets that only held late-Cotten. access to – almost identical to the amount of Bitcoin that was recently transferred.
At the time, the company said it would work with management to remove cryptocurrency from cold wallets.
Related to: Crypto’s regulatory fate will be decided in the coming year
The mysterious death of QuadrigaCX’s founder and CEO, followed by a stock market crash, has sparked conspiracy theories that the founder faked his death as part of a fraud scam.
The story was the subject of a 2022 Netflix documentary.
In 2014, years before his death, Cotten said on a podcast that the best way to store private keys is to print them and store them in an offline vault, and revealed that the exchange stores its private keys offline in a company vault. in the bank:
It is unclear if BTC’s move is related to EY’s recovery efforts. Cointelegraph reached out to EY for comment, but did not immediately receive a response.