The drama surrounding Canadian cryptocurrency exchange Quadrigacx continues to intensify, with a recent report by Zernoncense claiming that the exchange has no identifiable cold storage reserves and that it has never held more than 1,000 BTC in customer funds.
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Report Refutes Claims of Quadrigacx Owner’s Widow
The report finds numerous assertions made in the affidavit submitted to Canadian courts on Jan. 31 by Jennifer Roberston, the wife of the exchange’s allegedly deceased chief executive officer, Gerry Cotten, to be false.
The findings have been informed by analysis of Quadrigacx’s BTC and ETH wallets. As the wallet addresses for Quadrigacx “were not widely known,” the report relies on deposit information given to customers that was aggregated from Reddit.
The author notes that the findings are not guaranteed to represent “a factual truth,” however, comparisons between Quadrigacx and the withdrawal practices of known solvent exchanges shows “highly unorthodox” practices.
The analysis was conducted using Walletexplorer, which as the author states was created and is still being used by Chainalysis.
Report Claims Quadrigacx Uses Multi-Signature Wallets
Based on Zerononcense’s findings, the number of BTC held by Quadrigacx is substantially less than that which was reported in Jennifer Robertson’s affidavit.
The analysis finds that there are “no identifiable cold wallet reserves” for Quadrigacx, estimating that the exchange is in possession of less than 1,000 BTC.
The report also claims to evidence transfers totaling approximately 3.53 BTC that occurred on Jan. 24 and Jan. 25, apparently contradicting Robertson’s claims that the exchange’s funds are inaccessible.
The report also asserts that the numerous wallets used by Quadrigacx had multi-signature capability.
Quadrigacx Accused of Rerouting Customer Funds to Process Withdrawals
According to the report’s findings, Qaudrigacx was “clearly” re-routing payments from customers to process withdrawals, comprising the operation of a “shell or a ponzi.”
The author also asserts that withdrawal delays previously experienced by Quadrigacx customers resulted from the exchange not having the required funds available at the time, adding that in some instances the exchange was “forced to wait for enough customer deposits to be made” before processing withdrawals.
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from Bitcoin News http://bit.ly/2HT3XWC Report Claims Quadrigacx Never Held More Than 1,000 BTC
Over-the-counter (OTC) digital asset platform Genesis Global Trading has recently reported a 50 percent year-over-year increase in its trading volume, despite the continuing bearish trend on the markets which started last year. In a correspondence to its customers, Genesis also noted that the total of 
U.S.-based cryptocurrency trading platform 
Peer-to-per crypto exchange 
Zhao Dong, the founder of DFUND, has, in recent years, risen to prominence as one of China’s largest OTC traders. However, early in his trading career, Mr. Dong would incur losses that drove him to contemplate suicide.
During 2014, Zhao Dong states that he lost “nearly 150 million yuan” (almost $23.7 million USD) due to his decision to open “one of the largest [bitcoin] mines in [China]” immediately preceding the onset of 2014’s cryptocurrency bear season.
Despite his reputation as an OTC trader, Zhao Dong rejects the notion that he is a professional speculator. Zhao Dong states that he “doesn’t do technical analysis. I’m not a speculator. In fact, I’ve always been a small profit maker and I’m not a speculator.” Looking back on his experiences, Mr. Dong emphasizes risk management as the most important thing for traders to observe, before citing attributing a quote to Mark Zuckerberg – “not risking is the biggest risk. But adventure plus risk control is perfect.”