what's QuadrigaCX?

QuadrigaCX was a Canadian-based cryptocurrency exchange founded in 2013 by Gerald Cotten, operating as one of the country's largest platforms for trading digital assets like Bitcoin and Ethereum against fiat currencies such as the Canadian dollar. Users could deposit funds via bank transfers or crypto wallets, execute trades on its web-based platform, and withdraw to external addresses, with the exchange handling custody of assets in both hot and cold wallets. It positioned itself as a bridge between traditional finance and crypto, supporting features like margin trading and API integrations for advanced users. The exchange's operations relied heavily on centralized control, with Cotten as the sole keyholder for significant cold storage wallets, a practice that later proved catastrophic. In late 2018, following Cotten's death in India, QuadrigaCX filed for creditor protection, revealing that approximately $215 million CAD in liabilities exceeded recoverable assets by a wide margin. Investigations by Ernst & Young and the Ontario Securities Commission uncovered evidence of fraudulent activities, including the use of customer funds for personal expenses and Ponzi-like schemes, marking it as a cautionary tale in crypto exchange security and transparency.

Canada seized $1M from QuadrigaCX co-founder Patryn after he missed court.