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Disgraced Crypto Exchange QuadrigaCX Accidentally Sent Nearly $400,000 to Dead CEO’s Bitcoin Wallet

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On February 12, Ernst and Young (EY), the monitor of the QuadrigaCX case, released its first report with the Supreme Court of Nova Scotia. In it, EY stated that the exchange “inadvertently” moved $370,800 in Bitcoin to a cold wallet controlled by CEO Gerald Cotten, who passed away.

The report of the monitor read: “On February 6, 2019, Quadriga inadvertently transferred 103 bitcoins valued at approximately CAD $468,675 to Quadriga cold wallets which the Company is currently unable to access.”

“The Monitor is working with Management to retrieve this cryptocurrency from the various cold wallets, if possible.”

Bitcoin and Cryptocurrency Hot Wallets of QuadrigaCX

A Portion of EY’s Report, Amount of Cryptocurrencies Contained by the Hot Wallets of QuadrigaCX. The Full Report Can Be Viewed at the Bottom of This Article.

Throughout the past several weeks, CCN extensively reported about QuadrigaCX and the story involving the CEO of the company who reportedly died with the passwords to the exchange’s cryptocurrency cold wallets containing user funds.

WHAT DOES THIS ALL MEAN TO THE BITCOIN HOLDINGS OF USERS?

If the CEO passed away and the access to the company’s cold wallets or offline wallets cannot be restored, the $370,800 in Bitcoin “inadvertently” sent to the cold wallet cannot be recovered.

As such, for now, the company and the creditors of QuadrigaCX only have access to the company’s hot wallets. But, EY disclosed that the hot wallets of QuadrigaCX have less than $1 million in them, which is nowhere enough to pay back users who the company owes well over $150 million to.

“The Monitor was advised that Quadriga held the following cryptocurrency balances (with approximate Canadian currency equivalent aggregating to $902,743) within its hot wallets on its servers as at the Filing Date,” EY said.

Whether it is a hot wallet or a cold wallet, major cryptocurrency exchanges typically go through additional measures to ensure that funds are sent to the right address.

Sending $370,800 in Bitcoin from a hot wallet to a cold wallet the company knows cannot be accessed is equivalent to a company sending hundreds of thousands of dollars to a wrong bank account that the company does not control, which just does not occur.

Already, as reported by The Wall Street Journal, suspicions on the legitimacy of the explanation provided by QuadrigaCX on the loss of $190 million in funds intensified as independent researchers could not find sufficient evidence to prove the existence of cold wallets owned by the exchange.

In its report, EY said that it is attempting to access any cold wallets that exist, which suggests that wallets that can be considered as cold wallets have not been found yet.

The monitor said:

The Applicants and the Monitor will continue with their efforts to access Mr. Cotten’s devices, find and access any Quadriga cold wallets that exist, and locate any other cryptocurrency belonging to Quadriga and report back to the Court in respect of these activities.

THE UNBELIEVABLE STORY OF BITCOIN EXCHANGE QUADRIGACX

When the case of QuadrigaCX was first publicized, Kraken CEO Jesse Powell said on February 2 that the story of the exchange is “bizarre and, frankly unbelievable.”

Even at the time, due to the movement of some cryptocurrency wallets linked to the exchange, analysts were skeptical towards the nature of the lost wallets and whether the statement of the exchange could be backed with sufficient evidence.

The EY report comes in a period in which analysts and industry experts are not certain whether the cryptocurrency cold wallets held by the CEO of the exchange exist.

The monitor has confirmed that $370,800 in Bitcoin was sent to a cold wallet, and that may mean that the monitor has found at least one of the cold wallets the exchange allegedly does not have access to.

In the upcoming weeks, EY is expected to continue the search for the company’s missing crypto wallets by going through the devices owned by CEO Gerald Cotten.

Read the full EY report below:EY QuadrigaCX Report by on Scribd

Source. ccn

Bitcoin

Bitcoin (BTC) Price Accelerating Losses Below $8K, $7.5K Very Likely

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  • Bitcoin price corrected higher, but it faced hurdles near $8,120 and $8,140 against the US Dollar.
  • The price is declining again and it could gain momentum below the $8,000 support.
  • There is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to remain in a bearish zone unless the bulls push it above $8,120 and $8,240.

Bitcoin price is struggling to rebound above $8,100 against the US Dollar. Therefore, BTC is likely to resume its decline below $8,000 and $7,900 in the near term.

Bitcoin Price Analysis

Yesterday, there was a downside extension in bitcoin below the $8,000 support area against the US Dollar. BTC price traded to a new monthly low at $7,915 and settled below the 100 hourly simple moving average. Recently, there was an upside correction above the $8,000 level. Moreover, the price recovered above the $8,020 level, plus the 23.6% Fib retracement level of the last decline from the $8,386 high to $7,915 low.

However, the upward move was capped by the $8,100 and $8,120 resistance levels. Besides, the price failed to test the 50% Fib retracement level of the last decline from the $8,386 high to $7,915 low. As a result, there was a fresh decline below $8,020. The price is now accelerating declines below the $8,000 level. It even broke the last swing low at $7,915 and traded to a new monthly low near $7,850.

It seems like there was a strong bearish reaction below $8,000. The next key support is near the $7,800 level. If there are more downsides, bitcoin price could accelerate losses towards the $7,600 and $7,500 levels in the near term. An intermediate support is near the $7,720 level.

On the upside, the $8,000 and $8,020 levels are likely to act as hurdles for the bulls. The main resistance is near the $8,120 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin is clearly under a lot of pressure below $8,120 and $8,000. As long as there is no close above $8,120 and $8,240, there are chances of more downsides. The main target for the bearish in the coming sessions could be near the $7,600 and $7,500 levels.

Technical indicators:

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining sharply and is well below the 40 level.

Major Support Levels – $7,800 followed by $7,500.

Major Resistance Levels – $8,020, $8,120 and $8,150.

Source:newsbtc

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Bitcoin

Bitcoin (BTC) Price Accelerating Losses Below $8K, $7.5K Very Likely

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  • Bitcoin price corrected higher, but it faced hurdles near $8,120 and $8,140 against the US Dollar.
  • The price is declining again and it could gain momentum below the $8,000 support.
  • There is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The price is likely to remain in a bearish zone unless the bulls push it above $8,120 and $8,240.

Bitcoin price is struggling to rebound above $8,100 against the US Dollar. Therefore, BTC is likely to resume its decline below $8,000 and $7,900 in the near term.

Bitcoin Price Analysis

Yesterday, there was a downside extension in bitcoin below the $8,000 support area against the US Dollar. BTC price traded to a new monthly low at $7,915 and settled below the 100 hourly simple moving average. Recently, there was an upside correction above the $8,000 level. Moreover, the price recovered above the $8,020 level, plus the 23.6% Fib retracement level of the last decline from the $8,386 high to $7,915 low.

However, the upward move was capped by the $8,100 and $8,120 resistance levels. Besides, the price failed to test the 50% Fib retracement level of the last decline from the $8,386 high to $7,915 low. As a result, there was a fresh decline below $8,020. The price is now accelerating declines below the $8,000 level. It even broke the last swing low at $7,915 and traded to a new monthly low near $7,850.

It seems like there was a strong bearish reaction below $8,000. The next key support is near the $7,800 level. If there are more downsides, bitcoin price could accelerate losses towards the $7,600 and $7,500 levels in the near term. An intermediate support is near the $7,720 level.

On the upside, the $8,000 and $8,020 levels are likely to act as hurdles for the bulls. The main resistance is near the $8,120 level and the 100 hourly simple moving average. Besides, there is a major bearish trend line forming with resistance near $8,240 on the hourly chart of the BTC/USD pair.

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin is clearly under a lot of pressure below $8,120 and $8,000. As long as there is no close above $8,120 and $8,240, there are chances of more downsides. The main target for the bearish in the coming sessions could be near the $7,600 and $7,500 levels.

Hourly MACD – The MACD is gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is declining sharply and is well below the 40 level.

Major Support Levels – $7,800 followed by $7,500.

Major Resistance Levels – $8,020, $8,120 and $8,150.

Technical indicators:

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Bitcoin

Bitcoin And Crypto Market Cap Facing Hurdles: BCH, Litecoin, TRX, XLM Analysis

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  • The total crypto market cap corrected a few points, but it faced a strong resistance near $215.0B.
  • Bitcoin price is also correcting higher, but it is likely to struggle to clear the $8,200 resistance.
  • Litecoin (LTC) price is now facing resistance near the $55.50 and $56.50 levels.
  • BCH price is holding the main $215 support area and it is currently rebounding.
  • Tron (TRX) price is climbing higher and it is now placed nicely above the $0.0150 level.
  • Stellar (XLM) price is up more than 2% and it is moving towards the $0.0650 resistance.

The crypto market cap and bitcoin (BTC) are facing many hurdles on the upside. Ethereum (ETH), litecoin (LTC), ripple, BCH, tron (TRX), stellar (XLM) and other altcoins could struggle to climb higher.

Bitcoin Cash Price Analysis

BCH price corrected lower recently and tested the $215 support area against the US Dollar. The price is currently moving higher and is trading near the $220 level. On the upside, there is a major resistance near the $230 level, above which the price could recover towards the $240 level in the near term.

On the downside, if there is a bearish break below the $215 support, the price could decline towards the $205 and $200 support levels.

Litecoin (LTC), Tron (TRX) and Stellar (XLM) Price Analysis

Litecoin price managed to stay above the $51.50 and $50.00 support levels. LTC price is currently recovering and is trading above the $54.00 level. However, there are a few key hurdles near the $55.50 and $56.00 levels, above which the price could revisit the main $60.00 resistance area.

Tron price declined recently and tested the $0.0145 support area. TRX price remained well bid and recently started a nice upward move above the $0.0150 resistance area. The price is up more than 3% and it could continue to rise towards the $0.0155 resistance level in the near term.

Stellar price also declined recently and tested the $0.0600 support area. XLM price is now climbing higher and is trading above the $0.0625 resistance area. However, there is a major resistance near $0.0650, above which the price could continue to rise towards $0.0682 and $0.0695.

Bitcoin Crypto Market Altcoins ETH XRP EOS BNB TRX ADA LTC

Looking at the total cryptocurrency market cap 4-hours chart, there was a decent recovery from the $205.0B support area. However, the market cap struggled to clear a key resistance near the $215.0B level and the 100 SMA. Moreover, there is a connecting bearish trend line forming with resistance near $215.0B. Therefore, a clear break above the $215.0B resistance is needed for a nice rally in bitcoin, Ethereum, EOS, litecoin, ripple, XLM, BCH, BNB, TRX, ADA, XMR, and other altcoins in the coming sessions.

Source:newsbtc

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