This year’s biggest blockchain mystery: What happened to QuadrigaCX’s coins? Kraken announced Thursday to pay a reward of $100,000 to users who could help locate the missing funds.
Any tips sent to the platform will, in turn, be shared with law enforcement and rewarded, the company said in a blog post. The reward is payable in fiat or cryptocurrency.
Kraken is encouraging users to listen to a podcasts that outline both what is already known about QuadrigaCX. In order to encourage its users to participate, the Canadian crypto exchange that collapsed last month, another podcast describing what Kraken’s operators believe happened.
Kraken’s post said, “Kraken is giving up to $100,000 USD (fiat or crypto) as a reward for the tip(s) that best lead to the discovery of the missing $190 million US dollars.”
According to court filings QuadrigaCX owes roughly 115,000 customers about $137 million in cryptocurrencies. In another court filing QuadrigaCX owes $53 million in fiat, or $190 million overall (though later filings indicate that there may be additional funds owed, bringing the total as high as $196 million).
In court filings, Cotten’s widow, Jennifer Robertsen, said that he was the only individual at the exchange who knew the private keys to its crypto reserves, which were held in cold storage. QuadrigaCX sought protection from creditors following the death of its founder, Gerald Cotten.
While the exchange indicated that the majority of its crypto funds were held in cold storage, it has so far not released any wallet addresses to confirm this.
A cluster of five bitcoin addresses may be associated with Quadriga, according to blockchain analysis, but those addresses only contain roughly 104 bitcoin “inadvertently” sent to cold storage earlier this month.
Quadriga and its court-appointed monitor, Ernst & Young (EY), have unlocked a large chunk of the fiat funds, which were held by various third-party payment processors, after a hearing before the Nova Scotia Supreme Court, which is overseeing the exchange’s case.
Do you think the reward will help find the missing cryptos? Let us know in the comments section.