QuadrigaCX: How $190 Million in Crypto Disappeared When the CEO “Died”

Jun 10, 2025 · 12 min read

Canada's largest crypto exchange, $190 million in customer funds, a CEO who dies mysteriously in India, and cold wallets only he could access. The truth: QuadrigaCX was a fraud from the beginning, and the money was already gone.

The Rise of QuadrigaCX

Gerald Cotten founded QuadrigaCX in 2013. It became Canada's largest crypto exchange, processing $1 billion+ and serving 363,000 users. Cotten had a hidden past in online fraud schemes.

How the Fraud Worked

The Ontario Securities Commission found Cotten created fake accounts with fictitious balances and traded against his own customers. He misappropriated at least $115 million CAD for luxury travel, real estate, and risky trading. The “cold wallets” were nearly empty long before his death.

The Mysterious Death

Cotten died December 9, 2018 in Jaipur, India. His widow claimed only he had the cold wallet passwords. Suspicious factors: death certificate errors, no public autopsy, new will signed 12 days before death, and his fraud history.

Did He Fake His Death?

Creditors requested body exhumation. As of 2026, the case remains officially closed but questions persist.

Recovery

Only $46 million CAD recovered for 76,000 users — roughly 13 cents on the dollar.

Red Flags

1. Single point of failure for wallet access. 2. Withdrawal delays. 3. No regulatory oversight. 4. No proof of reserves. 5. Unknown founder background.