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QuadrigaCX CEO’s death seems like a suspicious one, says Kraken’s Jesse Powell




QuadrigaCX CEO's death seems like a suspicious one, says Kraken's Jesse Powell
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Jesse Powell, the Founder and CEO of Kraken, has always been outspoken on matters concerning QuadrigaCX, Canada’s largest exchange that shut down its operations due to unforeseen circumstances. Powell is now in the news for claiming that the events surrounding the exchange’s shutdown were uncanny.

QuadrigaCX abruptly shut down its operations earlier this year, citing the loss of access to its cold storage wallets, which resulted in a significant loss of funds. This was precipitated by the untimely death of the exchange’s co-founder and CEO, Gerald Cotten, who was also the only person with access to these wallets. More so, no copies of the passphrase have been found. Based on reports, these wallets had over $190 million worth customer funds.

Additionally, a recent report by EY, the audit firm appointed by the court to handle creditor protection, revealed that the cold wallets were emptied months before the death of the Founder. This resulted in the community wondering whether there were more facts left to be discovered.

Jesse Powell actively participated in the investigation process pertaining to QuadrigaCX. The exchange also announced a reward of $100,000 for more information leading to the missing funds.

In a recent interview with Decryptmedia, Jesse Powell revealed the reasons that urged him to step in. They were: a single person maintaining the entire exchange, previously incurred loss due to issues associated with Ethereum smart contract, probability of money laundering, the timeframe of the Founder’s death, and Omar Dhanani.

Jesse Powell also termed the practice of giving all the authority to the Maintainer, Alex Hanin, as one that opened doors for a “key-man risk,” as he was the only Maintainer of the entire exchange. He said,

“[If] one man gets hit by a bus, the whole exchange is down.”

This was followed by the Founder speaking about the maintainer’s key responsibility, backing up transaction details every hour. He stated that if something were to happen, then there would be no information for those 60 minutes, adding that this was the main reason all exchanges had a real-time back-up. He went on to say,

“You’ll probably find this business is basically a facade with nothing really going on behind the scenes.”

Powell also questioned the events surrounding Cotten’s death, especially the fact that he left a $9 million will for his wife, created just days before his death. Powell said,

“It seems a really suspicious death. It was so conveniently timed.”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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1 Comment

1 Comment

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    March 9, 2019 at 11:35 PM

    I really don’t get these crypto comp. Some will do the right thing and be true leaders. Others think they are old kings who are not moving with the times. Or comparing themselves to no one. Yup , they think they are kings. But the modern can’t and will run their business as kings. We need new leaders who are responsible and take cyrpto to mainstream by working with big comp and big banks. If you got nothing to hide, why not join the team and we together make it.

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HitBTC responds to allegations of insolvency, refutes claims made by Redditors




HitBTC responds to allegations of insolvency
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HitBTC, a Hong Kong-based exchange has been the center of accusations among users on Reddit, Twitter, and other forums. HitBTC users started complaining about issues regarding withdrawal and extensive procedures after one particular user @ProofofReserach put out a thread alleging insolvency of HitBTC.

To put an end to all the accusations, HitBTC has broken its silence with a blog post explaining their side of the story. According to HitBTC, their systems performed well during the winter of 2017-18, however, HitBTC mentioned that due to overwhelming demand for the services, they experienced bottlenecks at an operational level.

Referring to the BitcoinExchangeGuide article, HitBTC responded:

“A widely quoted article, in its entirety, is based on only 2 AML cases. One of them was initiated as part of the investigation into the December, 2018 BTCP security breach, at the request of the coin’s core team. Unfortunately, there is no clear indication of the nature of the second case that can be discerned from the article. The author of the article failed to track the deposit/withdrawal dynamics that did not uncover any irregularities. A simple block explorer or our public System Monitor would suffice for these purposes”

Additionally, referring to the altcoins being added and removed from the platform, the exchange said that they were honored to work with a diverse range of projects, however, since the crypto sphere was still nascent, there were lapses in their judgment in assessing the integration partners. With the above-mentioned prominent cases, HitBTC also addressed other topics.

@ProofofResearch replied to HitBTC’s blog:

“Is there a reason why you’re unable to tell people us where your Bitcoin storage is at? If what I published is as untrue as you claim it is, then providing a wallet address where your Bitcoin funds are stored will go a long way in *proving that*.”

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