Lost access to $190 million of customers’ money

Lost access to $190 million of customers’ money

Postby oneh2obabe » Feb 5th, 2019, 4:42 am

Rude awakening for those expecting to become overnight millionaires.

QuadrigaCX, one of Canada's best-known cryptocurrency exchanges, says it does not have access to $190-million worth of customers' funds and is seeking creditor protection, according to court documents filed on Thursday in Nova Scotia.

The parent company of the B.C.-based exchange lost access to cryptocurrency worth an estimated $190 million at current market value after the death of its 30-year-old CEO, Gerald Cotten in December, court filings show. The "missing coins" are held in so-called "cold wallets" that were managed single-handedly by Cotten, who died suddenly of complications of Crohn's disease during a trip to India.

The company currently has only $375,000 in cash and owes a total of approximately $260 million to around 92,000 customers, according to the filings.

https://globalnews.ca/news/4914774/quad ... -exchange/
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Re: Lost access to $190 million of customers’ money

Postby spooker » Feb 5th, 2019, 8:48 am

oneh2obabe wrote:Rude awakening for those expecting to become overnight millionaires.

QuadrigaCX, one of Canada's best-known cryptocurrency exchanges, says it does not have access to $190-million worth of customers' funds and is seeking creditor protection, according to court documents filed on Thursday in Nova Scotia.

The parent company of the B.C.-based exchange lost access to cryptocurrency worth an estimated $190 million at current market value after the death of its 30-year-old CEO, Gerald Cotten in December, court filings show. The "missing coins" are held in so-called "cold wallets" that were managed single-handedly by Cotten, who died suddenly of complications of Crohn's disease during a trip to India.

The company currently has only $375,000 in cash and owes a total of approximately $260 million to around 92,000 customers, according to the filings.

https://globalnews.ca/news/4914774/quad ... -exchange/


When working for a blockchain related company we had three people with the keys to the main account ... and travel was always arranged so that those three people never went at the same time or by using the same method, even meetings that included all three people would require that one be offsite and teleconferencing in ... it's a terrible oversight that they locked it down to a single point of failure ... sure, you don't expect someone to die at the age of 30, but you have to take responsibility seriously ...
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Re: Lost access to $190 million of customers’ money

Postby JagXKR » Feb 5th, 2019, 8:51 am

Cryptocurrency is the latest pyramid scheme, ponzi scheme etc. Those that got in early and have already left are the smart ones. The rest will hold the bag for the imaginary money. Reminds me a bit of junk bonds.
Of course there will always be those that tout how great they are and that they're the future....
Why use a big word when a diminutive one will suffice.

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Re: Lost access to $190 million of customers’ money

Postby Urban Cowboy » Feb 5th, 2019, 10:38 am

JagXKR wrote:Cryptocurrency is the latest pyramid scheme, ponzi scheme etc. Those that got in early and have already left are the smart ones. The rest will hold the bag for the imaginary money. Reminds me a bit of junk bonds.
Of course there will always be those that tout how great they are and that they're the future....


Aren't these just another method for those who wish to avoid paying taxes?
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Re: Lost access to $190 million of customers’ money

Postby spooker » Feb 5th, 2019, 11:57 am

Urban Cowboy wrote:
JagXKR wrote:Cryptocurrency is the latest pyramid scheme, ponzi scheme etc. Those that got in early and have already left are the smart ones. The rest will hold the bag for the imaginary money. Reminds me a bit of junk bonds.
Of course there will always be those that tout how great they are and that they're the future....


Aren't these just another method for those who wish to avoid paying taxes?


You're supposed to register the gains/losses just as any other investment vehicle so no, you don't necessarily avoid taxes ... any credible exchange requires multiple forms of identification to open up an account to trade cryptocurrencies

Avoiding taxes is something you can do in multiple ways ...
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Re: Lost access to $190 million of customers’ money

Postby motokelowna1 » Feb 5th, 2019, 2:28 pm

For a small fee I will tell you the code . It starts with 123$%^789
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Re: Lost access to $190 million of customers’ money

Postby soupy » Feb 5th, 2019, 2:49 pm

And in other news, all friends of family of QuadrigaCX employees seem to have made out just fine. [icon_lol2.gif]
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