Report Finds Quadriga Founder Stole Clients’ Cryptocurrency Before Death

lazarus writes: As part of the investigation being done by Ernst & Young into the mismanagement of client’s cash and cryptocurrency at Quadriga Fintech Solutions Corp they have found that the late founder and CEO Gerald Cotten transferred client’s cryptocurrency to personal accounts on rival exchanges and heavily traded on them. “Competitor exchanges received multiple forms of cryptocurrencies from Quadriga wallets from 2016 through 2019 — 9,450 Bitcoin, 387,738 Ethereum and 239,020 Litecoin,” reports the Financial Post. “Quadriga’s cryptocurrency reserves were ‘adversely affected’ by trading losses and incremental fees charged by other exchanges, the report said.” “The late CEO also created accounts under aliases where ‘unsupported deposits’ were used to trade within the platform, resulting in inflated revenue figures, artificial trades with users and ultimately the withdrawal of cryptocurrency, the report said. And ‘substantial funds’ were transferred to Cotten personally and other related parties.” The report also paints a picture of an organization that was run by a single person from his laptop with no oversight, segregation of duties and responsibilities, and no internal controls.

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