On-chain data shows that five wallets associated with the defunct crypto exchange QuadrigaCX moved large amounts of Bitcoin for the first time in several years.

According to blockchain analyst ZachXBT, the cold storage wallet addresses, which had been linked to QuadrigaCX by researchers in 2019, moved 104 BTC worth $1.7M on Dec. 17.

 ZachXBT also noted that one of the addresses sent 69 BTC to Wasabi Wallet, a privacy focused non-custodial Bitcoin desktop wallet that makes it difficult to trace transactions.

The funds were moved for the first time since QuadrigaCX declared bankruptcy in 2019 after the supposed death of its founder Gerald Cotton – allegedly the only one with the private keys to the exchange’s cold storage accounts. At the time, QuadrigaCX owed $200 million worth of crypto to its customers. 

QuadrigaCX co-founder Michael Patryn, who now goes by the Twitter pseudonym “0xSifu” weighed in on the development. Patryn referenced QuadrigaCX’s acting trustee Ernst & Young’s claims that they had mistakenly sent the funds to the exchange’s cold storage wallets in 2019. 

“They claimed to have accidentally lost the funds by sending to defunct wallets. Now it’s suddenly moving again. Wen competence,” tweeted Patryn.

The exchange’s bankruptcy inspectors said they were aware of the funds moving, but claimed Ernst & Young had not played any part in it.

“We’re working to gather more information & I hope stolen funds can be recovered,” tweeted bankruptcy inspector Magdalena Gronowska.