QuadrigaCX

Summary

QuadrigaCX was, at the time of its 2019 collapse, reportedly Canada's largest cryptocurrency exchange. It ceased operations after announcing that CEO Gerald Cotten had died in December 2018. An Ontario Securities Commission (OSC) review concluded the collapse "resulted from a fraud committed by" Cotten and that Quadriga "operated like a Ponzi scheme". ^[1][2]

What the regulator found

The OSC found that of about CA$215 million owed to roughly 76,000 clients, only about CA$46 million was recovered, leaving a shortfall of approximately CA$169 million. ^[1] It attributed the bulk — roughly CA$115 million — to Cotten's trading losses using fictitious accounts under aliases, with further amounts lost to external trading and personal misappropriation. ^[1]

Note

Initial public attention focused on the claim that client crypto was locked in cold wallets only Cotten could access; the OSC found this did not explain the shortfall. ^[1][2]

Bracketed numbers refer to the numbered sources listed below.