The latest Ernst & Young report on the collapse of the QuadrigaCX crypto exchange is out, and it’s actually freshly amazing just how bad Quadriga really was. The exchange was a Ponzi scheme operating as a money laundering chop shop, dealing with a few outside customers here and there for appearance’s sake. It appears never<\/i> to have been run as a sustainable business. Gerald Cotten created fake money on the exchange, bought real bitcoins with it, sold those coins on other exchanges, and blew it all margin-trading on altcoins \u2014 except what he spent on living a life of luxury.<\/p>\n
Amy Castor has the summary,<\/a> but you should read the full report as well \u2014 go to the EY Quadriga page,<\/a> and look under Documents \u2192 English \u2192 Bankruptcy \u2192 4. Reports of the Trustee \u2192 2. First Report of the Trustee. I think we can definitely speak in terms of Cotten’s alleged<\/em> death.<\/p>\n Disasters like Quadriga are why regulators are moving in on the space hard. The Financial Action Task Force (FATF) has finalised its guidance on virtual asset exchanges,<\/a> and it’s precisely what was expected \u2014 Coindesk summarises<\/a> the report. Countries have until June 2020 to enforce this on their crypto exchanges.<\/p>\n <\/p>\n April 1st, the day the bull run actually begins to take off, just so happens to line up with the day Tether decided to start issuing 1.5 billion Tethers. pic.twitter.com\/OzUQ0JBWfp<\/a><\/p>\n — Cas \u201cMildly Interesting\u201d Piancey (@CasPiancey) June 21, 2019<\/a><\/p><\/blockquote>\n\n