Bitcoin linked to QuadrigaCX moved after years of dormancy

Around 104 BTC (~$1.7 million), linked to the defunct Canadian crypto exchange QuadrigaCX, were moved from cold wallets to new addresses. The assets had lain dormant for more than three years, according to researcher ZachXBT.

Five wallets attributed to QuadrigaCX unexpectedly moved ~104 BTC on Dec 17 for the first time in years.

1ECUQLuioJbFZAQchcZq9pggd4EwcpuANe
1J9Fqc3TicNoy1Y7tgmhQznWrP5AVLXj9R
1MhgmGaHwLAvvKVyFvy6zy9pRQFXaxwE9M
1HyYMMCdCcHnfjwMW2jE4cv9qVkVDFUzVa
1JPtxSGoekZfLQeYAWkbhBhkr2VEDADHZB

— ZachXBT (@zachxbt) December 19, 2022

According to CoinDesk, QuadrigaCX’s trustee — EY — did not initiate these transactions.

The exchange collapsed in 2019 after the death of its co-founder Gerald Cotten. He turned out to be the sole holder of the private keys to the cold wallets. The platform ow ed users $171.5 million.

In February 2019, EY said the exchange, due to an inadvertent error, had lost another 103 BTC. The platform moved the assets to a cold wallet whose access had been lost.

It was these coins that moved on December 17, 2022. ZachXBT noted that 69 BTC were sent to the Wasabi mixing service.

It’s appears ~69 BTC from 1HyYM & 1JPtxS were sent to Wasabi on Dec 17, 2022

eb29aa1de112a20ad55e05e57bc9a9e3efc72c262b3fe6172fca729a2e163ff7

— ZachXBT (@zachxbt) December 19, 2022

“The bankruptcy investigators are aware of the movement of QuadrigaCX funds. Thanks to blockchain-forensics for tracing the flows. We are collecting additional information and hope to recover the stolen funds,” said Magdalena Gronowska, EY, a member of the creditors’ committee.

Earlier in January, ZachXBT identified QuadrigaCX co-founder Michael Patryn among the co-founders of the DeFi protocol Wonderland. Users recalled his criminal past.

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