
OSC Investigative Report on Quadriga Crypto Exchange - halturing
https://www.osc.gov.on.ca/quadrigacxreport/
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"Staff determined that Quadriga collapsed due to a fraud committed by Cotten.
Cotten opened accounts under aliases and credited himself with fictitious
currency and crypto asset balances, which he traded with unsuspecting Quadriga
clients. Cotten sustained real losses when the price of crypto assets changed,
thereby creating a shortfall in assets available to satisfy client
withdrawals. Cotten covered this shortfall with other clients’ deposits – in
effect, operating a Ponzi scheme. Staff calculated that the bulk of the $169
million in client losses – approximately $115 million – arose from Cotten’s
fraudulent trading."

