Investigators Find QuadrigaCX Crypto Wallets Were Emptied Before CEO's Death
After examining data provided by the exchange, auditor Ernst & Young reports that the exchange's wallets were emptied months before the founder's death.
It appears Cotten began transferring funds out of the cold wallets in the year prior to his death.
Like most cryptocurrency exchanges, QuadrigaCX kept most of its funds in so-called "cold wallets." These repositories of cryptocurrency aren't connected to the internet, making them more secure from hacking attempts.
There’s virtually no regulation of cryptocurrency exchanges, and nothing in the way of insurance against losses. Ernst & Young is trying to track the funds moved out of the cold storage wallets, but one Bitcoin looks like all the rest after it makes hops in the blockchain.