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It seems like withdrawals were in cash: "Quadriga used an unusual teller-window system for customers to withdraw their money. Rather than pay customers via bank
by astoor 5y ago
It seems like withdrawals were in cash: "Quadriga used an unusual teller-window system for customers to withdraw their money. Rather than pay customers via bank wires, they were told to come to a nondescript building in Laval, Quebec to pick up the cash."[0]
[0] https://en.wikipedia.org/wiki/Quadriga_Fintech_Solutions https://en.wikipedia.org/wiki/Quadriga_Fintech_Solutions
- ceejayoz 5y agoThat's both sort of an explanation - even my local grocery store uses armored cars to transport money to/from a bank, not holding piles of it at home - and more red flags.
- PretzelPirate 5y agoIt’s important to remember that Quadriga wasn’t able to get banking services in Canada. Canadian banks were refusing to do business with any cryptocurrency-related businesses. Keeping the cash at home wasn’t a good idea, but being blocked from using traditional solutions necessitated that they build their own.
- alexpotato 5y agoSomething similar happened with cannabis related businesses in the US. Since essentially ALL banks are FDIC insured, taking money from a business selling cannabis, which is illegal under Federal law, is prohibited. There have been multiple documentary/news show episodes about this. Interesting side fact, NPR Planet Money did a special where they tried to find a bank that was NOT FDIC insured. They picked the smallest single physical location bank they could find but even that bank was FDIC insured.
- deleted 5y ago[deleted]