5 ms·

They explain it pretty well in the article.

readthenotes1 4y ago
"Our overheads have exceeded our earnings for some time" You and I have a different idea of what " pretty well" means, unless I missed something.
Nursie 4y ago
For some reason I missed that! This FAQ- "We don’t hold customer funds – at the time of the trade, we send the cryptocurrency directly to your wallet" I guess shows this isn't another Quadriga event. So that's good!
- Ygg2 4y ago
  What's a Quadriga event?
  - imron 4y ago
    From Wikipedia > The company's CEO and founder, Gerald William Cotten (born 11 May 1988),[2] died in 2018 after traveling to India. Up to C$250 million (US$190 million) in cryptocurrency owed to 115,000 customers was missing[3] or could not be accessed because only Cotten held the password to off-line cold wallets.[4][5][6] > Blockchain analysts have reported that they are unable to find evidence of Quadriga's cold wallets on the blockchain, a public ledger used for cryptocurrencies.[37][38] > Ernst & Young found five Quadriga cold wallet addresses, but they were empty, containing no cryptocurrency since April 2018.
  - Nursie 4y ago
    Quadriga CX was a Canadian cryptocurrency exchange that went under a few years ago (early 2018? unsure exactly when) . Basically the founder lived the high life with his partner, multiple houses, a yacht, etc etc, and it looked like a stunningly successful and honest exchange. He died in India when he was there apparently building orphanages. It turns out that he ran the entire thing from his laptop and nobody else could get in as he didn't share the passwords to anything. It further turns out that when people started investigating properly, the whole enterprise was insolvent, because he had viewed the customer funds and company funds as personal funds, 'normal' money and cryptocurrency alike, and he had gambled most of the cryptocurrency away in bad trades on other exchanges, and most/all of the 'fiat' was gone too. He also turns out to have had a history of involvement in scammy 'hyper-growth investment!' stuff. His death looks very convenient, and IIRC his widow won't allow the body to be exhumed and checked to make sure it's really him (it probably is, I have no idea). The funds were gone.
    - IG_Semmelweiss 4y ago
      the ex made a very convincing blog post some time ago that she was an innocent bystander to that train wreck. As a neutral observer, she sounded somewhat believable, especially since she basically was along for the ride, and has almost nothing to show for the scam (and a lot of downside from being the person targeted by the ire of depositors) https://www.cbc.ca/news/canada/nova-scotia/jennifer-robertson-quadrigacx-settlement-agreement-1.5313813 https://www.cbc.ca/news/canada/nova-scotia/jennifer-robertso...
  - lordfrito 4y ago
    Found this article and ran down the rabbit hole. What a wild ride. https://amycastor.com/2019/02/12/how-the-hell-did-we-get-here-a-timeline-of-quadrigacx-events/ https://amycastor.com/2019/02/12/how-the-hell-did-we-get-her...
- xur17 4y ago
  Yeah, I was pleasantly surprised to see that they directly swap without holding customer funds (for any longer than the actual trade takes).

"Our overheads have exceeded our earnings for some time" You and I have a different idea of what " pretty well" means, unless I missed something.

Nursie 4y ago

For some reason I missed that! This FAQ- "We don’t hold customer funds – at the time of the trade, we send the cryptocurrency directly to your wallet" I guess shows this isn't another Quadriga event. So that's good!

Ygg2 4y ago
What's a Quadriga event?
- imron 4y ago
  From Wikipedia > The company's CEO and founder, Gerald William Cotten (born 11 May 1988),[2] died in 2018 after traveling to India. Up to C$250 million (US$190 million) in cryptocurrency owed to 115,000 customers was missing[3] or could not be accessed because only Cotten held the password to off-line cold wallets.[4][5][6] > Blockchain analysts have reported that they are unable to find evidence of Quadriga's cold wallets on the blockchain, a public ledger used for cryptocurrencies.[37][38] > Ernst & Young found five Quadriga cold wallet addresses, but they were empty, containing no cryptocurrency since April 2018.
- Nursie 4y ago
  Quadriga CX was a Canadian cryptocurrency exchange that went under a few years ago (early 2018? unsure exactly when) . Basically the founder lived the high life with his partner, multiple houses, a yacht, etc etc, and it looked like a stunningly successful and honest exchange. He died in India when he was there apparently building orphanages. It turns out that he ran the entire thing from his laptop and nobody else could get in as he didn't share the passwords to anything. It further turns out that when people started investigating properly, the whole enterprise was insolvent, because he had viewed the customer funds and company funds as personal funds, 'normal' money and cryptocurrency alike, and he had gambled most of the cryptocurrency away in bad trades on other exchanges, and most/all of the 'fiat' was gone too. He also turns out to have had a history of involvement in scammy 'hyper-growth investment!' stuff. His death looks very convenient, and IIRC his widow won't allow the body to be exhumed and checked to make sure it's really him (it probably is, I have no idea). The funds were gone.
  - IG_Semmelweiss 4y ago
    the ex made a very convincing blog post some time ago that she was an innocent bystander to that train wreck. As a neutral observer, she sounded somewhat believable, especially since she basically was along for the ride, and has almost nothing to show for the scam (and a lot of downside from being the person targeted by the ire of depositors) https://www.cbc.ca/news/canada/nova-scotia/jennifer-robertson-quadrigacx-settlement-agreement-1.5313813 https://www.cbc.ca/news/canada/nova-scotia/jennifer-robertso...
- lordfrito 4y ago
  Found this article and ran down the rabbit hole. What a wild ride. https://amycastor.com/2019/02/12/how-the-hell-did-we-get-here-a-timeline-of-quadrigacx-events/ https://amycastor.com/2019/02/12/how-the-hell-did-we-get-her...
xur17 4y ago
Yeah, I was pleasantly surprised to see that they directly swap without holding customer funds (for any longer than the actual trade takes).