- February 28, 2019
- Posted by: giancarlo
- Category: Exchanges
Leading crypto exchange Kraken has posted a reward of $100,000 for the discovery of the funds missing from Canadian exchange QuadrigaCX’s wallets. This news comes via a blog post published on Kraken’s website earlier today.
Quadriga has been a major topic of discussion in the crypto space recently. After its founder Gerald Cotten died suddenly on a trip to India in December 2018, Quadriga has been unable to access its cold wallets where it stored the majority of its cryptoassets, since Cotten was, supposedly, the only person who held the private keys. Despite searches by company employees, as well as Cotten’s wife, the private keys have not been recovered. (There is some legitimate speculation that Cotten have stored the company’s private keys in a safety deposit box, but that notion is as of yet unconfirmed.)
At present time, Quadriga reportedly only has CA $375,000 (US $286,000) in cash, but it owes CA $260,000,000 (US $198,435,000) to its users. In effect, it owes nearly 700 times what it has in assets. As a result of its inability to pay cover its debts, Quadriga has sought credit protection in Canada.
However, due to the mysterious nature of Cotten’s death, and the value of the funds that have gone missing, many in the crypto community have speculated there may be foul play involved. Even the Kraken blog post notes, “Some say the events and circumstances surrounding this case are too suspicious to be believed.”
Kraken’s reward of $100,000 reward — in cash or crypto — will go to whoever’s “tip(s) that best lead to the discovery of $190 million US dollars.” The exchange also points users to its own podcast where “we reveal our own analysis and subjective assessment of the most plausible explanations or theories based on our experience as exchange operators.”