Here’s some more intrigue about the QuadrigaCX cryptocurrency exchange failure.

As I understand it, there was a separate company charged with serving as the payment processor, a kind of go-between for Quadriga and its clients. People would wire money to Costodian using an established payment processor called Billerfy (like PayPal), and Costodian would then hold the funds and direct Quadriga to issue the client an equivalent amount of tokens to use on the exchange. Costodian’s sole officer, Jose Reyes, allegedly transferred some of the funds held by Costodian into his own personal accounts.

From December 2017 to February 2018, 388 individuals or corporations (“Depositors”) made 465 total deposits in the aggregate amount of approximately $67 million into accounts held by Costodian with CIBC. Jose Reyes (“Reyes”), the sole officer and director of Costodian, transferred a portion of the Disputed Funds to his own personal accounts with CIBC.

The 388 clients want their money back, but Reyes, Cotten (now deceased) and Billerfy say they are entitled to the funds. The bank holding the accounts is seeking the courts resolve the issue.
canlii.org

So, we have people entrusting their money (a lot of money) to a sole proprietor, who then tells another sole proprietor how much vapormoney to award them to play around with. One sole proprietor seemingly tries to abscond with some of the money, and the other conveniently dies on the other side of the world, having previously refused to confirm whether users had been credited the amount of vapormoney they were expecting. No one knows the passcodes to extract the cryptocurrencies, so the users can’t withdraw their cryptos or trade them for dollars to be wired them. The bank has sent the disputed funds to the court to hold until such time as it resolves who is entitled to the money. Meanwhile, QuadrigaCX has filed for bankruptcy, tying even more money up where people cannot get to it.

This is either a colossal exit scam got wrong, or a total clusterfuck of financial mismanagement.