QuadrigaCX
A Canadian exchange that collapsed in 2019 after the reported death of CEO Gerald Cotten. An Ontario Securities Commission review concluded it operated like a Ponzi scheme, with a ~$169M (CAD) shortfall driven by Cotten's hidden trading losses.
Also known as: QuadrigaCX, Quadriga, Gerald Cotten
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.
People & entities involved
Sources (2)
- QuadrigaCX: A Review by Staff of the Ontario Securities Commission — Ontario Securities Commission
- Quadriga (company) — overview — Wikipedia
See also
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)TokensA 2017–2018 ICO (BCT tokens, ~$30M) for a 'Blockchain Terminal' — a Bloomberg-style crypto trading terminal. The SEC and DOJ said convicted ex-hedge-funder Boaz Manor secretly ran it under a fake identity ('Shaun MacDonald'), using associate Edith Pardo as a front, and lied about the product's adoption.
- Crowd Machine (CMCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.