QuadrigaCX was a Canadian crypto exchange that shut down and filed for bankruptcy in early 2019, with hundreds of millions more in liabilities than in assets. It later became apparent that the exchange’s founder, Gerald Cotten, had taken customer funds for his own personal use. Cotten reportedly died shortly before the exchange’s collapse, though there have been questions around whether he may have faked his own death to pull off an exit scam. Poor accounting processes have made the bankruptcy process — which is still ongoing — a nightmare for those in charge of trying to locate and recover assets.

Now, someone has moved 104 BTC (priced at $1.75 million today) from what is supposed to be a Quadriga cold wallet. In 2019, Quadriga’s bankruptcy trustee Ernst & Young revealed they had erroneously transferred these roughly 100 Bitcoin to that wallet, which they could not access. Oops.

Most of the stolen BTC was transferred to a privacy service to obfuscate its ultimate destination. Ernst & Young subsequently confirmed the transfers were « unauthorized transactions » and not performed by them.