CEO of Coinbase Brian Armstrong, decided to share his thoughts on that, in the opinion of the team of the exchange, happened to QuadrigaCX. The scandal surrounding canadian crypto currency exchange, due to the loss of several hundred million dollars provoked a strong reaction in cryptosuite. Many researchers and users are still learning what actually happened simultaneously with the ongoing police investigation. Was published several theories, including one in which it was alleged that CEO Gerald Cotten is still alive.
Coinbase has added its voice to numerous studies, making the assumption that actually happened. In a long message on Twitter, Armstrong announced that, according to the Coinbase team, happened with mass QuadrigaCX:
Wanted to share a summary of what we believe happened to QuadrigaCX. We did our own internal research, including some blockchain analytics, to see if we could help. Important to note that this is just our best guess. Take it as *pure speculation*, nothing more.
— Brian Armstrong (@brian_armstrong) February 21, 2019
The investigation team Coinbase
With his message, Armstrong refers to the internal study team, which included analysis of the blockchain. By identifying clusters, which, apparently, were connected with cold storage exchange, the Coinbase team noticed that the remains of the stores were controlled and moved manually in 2018.
The scheme of the transaction from cold storage pointed them to the exchange, trying to stay afloat after the difficulties of conducting business, is probably due to the bear market. Armstrong suggests that the death of Cotto, coincided with the inept management of the exchange and failed surgeries that insiders used as a way to cover up the past causes of failure in business. Putting that QuadrigaCX 2013, Armstrong said that if it was fraudulent bankruptcy action, then, it probably would plan better.
Most likely, after a month of debates from December to January, the management decided to cut losses and to publish a statement in which it asserted that access to money was lost with the death of the Director General. Noting that this version is not perfect, Armstrong stressed that it seems the most plausible based on the available data, although, as the development of the case may well be incorrect.
The head of Coinbase said that this theory is just a private investigation on their team, and it should not be taken as final proof of what really happened.
It is known that in a situation with QuadrigaCX affected more than 100,000 users lost almost $200 000. Hard to tell how Coinbase theory true, but one cannot deny that this event is extremely unusual. Meanwhile, it is hoped that the trial ultimately will allow customers to receive their funds.
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Tags: Coinbase QuadrigaCX