Token Daily - QuadrigaCX Owes Customers $190 Million, Court Filing Shows

“Quadriga’s inventory of cryptocurrency has become unavailable and some of it may be lost," the founder's widow said in documents obtained by CoinDesk.

25 25

Michelle L. Staton - @MichelleLStaton

File this under why "The Revolution Need Rules." To clarify, once again, cryptocurrency regulation is not about on-chain governance or codebases. It's about crypto companies responsibly handling customer assets so things like this can't happen. https://t.co/x7I82YYTqE

0 1

AoverK - @AoverK

This is why it's important to have a disaster recovery plan and a business continuity plan. https://t.co/kE9lshqg4F

1 4

Jeff Garzik - @jgarzik

RT @cz_binance: That's sad. There are many solutions to split private keys or signing to achieve 3/5, 5/7 etc. Never neglect security. Also, never have CEO carry private keys. Bad on many levels. Personally, in good health and intent to live longer and prosper. Thx for asking. Stay #safu. https://t.co/4uPQnXNN2D

51 252

Jonha Richman - @JonhaRichman

Hmm 🤔, I thought it was multi-sig? https://t.co/ZxEUUAydFw

0 1

Christopher Wheeler - @Stocktrader

RT @Melt_Dem: 1/ beyond horrifying. canada's largest exchange @QuadrigaCoinEx - founder dies suddenly - no one has private keys to wallets - fiat balances inaccessible operational security and continuity planning is ESSENTIAL - for both a business *and* an individual https://t.co/lDFNBZtq7o

170 376

CZ - @cz_binance

That's sad. There are many solutions to split private keys or signing to achieve 3/5, 5/7 etc. Never neglect security. Also, never have CEO carry private keys. Bad on many levels. Personally, in good health and intent to live longer and prosper. Thx for asking. Stay #safu. https://t.co/4uPQnXNN2D

6 26

Andrew "Not cool enough for an ETH scam" Glidden - @asglidden

So secure, even death can't expropriate you. https://t.co/iOatgXRSzq

0 1

Jon Matonis - @jonmatonis

RT @TomasForgac: In the future book about antifragility of #crypto, this case will be in one of the chapter titles: Canadian exchange cannot access its customer's funds because the only person with access died https://t.co/bHlALWLoz7

3 4

Crypto de' Medici - @cryptodemedici

Nobody even lives in Canada https://t.co/VWLlxEqwU9

0 8

Wong Joon Ian - @joonian

RT @coindesk: JUST IN: Troubled Canadian crypto exchange QuadrigaCX owes its customers $190 million and cannot access most of the funds, according to a court filing obtained by CoinDesk's @nikhileshde https://t.co/0f8TW0teKN

119 172

Pirate Beachbum - @piratebeachbum

RT @IamNomad: 190M in btc gone forever. Supply burn?! https://t.co/vaF1SuCrlD

37 185

Tuur Demeester - @TuurDemeester

RT @CollinCrypto: QuadrigaCX founder died and had sole access to all of the cold storage keys. The exchange owes customers $190 million. #bitcoin #litecoin #ethereum #bitcoincash https://t.co/6VTG16FLIb

165 268

an overwhelming surplus of diggity - @spudowiar

RT @goldbe: This is tragic and horrifying. Founder dies and access to the cryptocurrency exchange's cold wallet is lost. https://t.co/pJynwlWqWy

3 4

Blue Protocol - Securing The Crypto Age - @Blue_Protocol

This seems suspect. One founder had the sole private key to cold wallets, with no contingency plan? 🤔 https://t.co/U17qqQk7tm

0 0

Jackson Palmer - @ummjackson

"The future of money" https://t.co/sknL5W3CiY

5 19

Kevin Werbach - @kwerb

Be your own bank! https://t.co/FPdZEUUNyG

0 0

Santi - @santisiri

82 162

Paul Walsh - @Paul__Walsh

This is not something that should happen to an exchange in 2019. How did the Board of Directors allow just one person to own security access to the company's entire crypto assets. It makes zero sense. https://t.co/eAxXVPOLlI

1 1

cacheonomics - @CacheBoi

84 112

Eddie van der Walt - @EdVanDerWalt

61 115

Joseph Young - @iamjosephyoung

@kryptonium2018 I put from https://t.co/oTYZdcwtdm in the image but if you want the link, here it is https://t.co/oKvHr1X9wB

0 1

Nik Patel - @cointradernik

43 63

Ragnar Lifthrasir ⚑ - @Ragnarly

Trusted 3rd parties are security holes https://t.co/Mx1AJgJ1jZ

1 11

sicarious - @Sicarious_

Supply burn pump. Boolish #bitcoin https://t.co/jkNa6hZlYy

0 9

Mason & Co. - @masonic_tweets

0 3

The_Purple_Tomato 4 months ago

https://www.reddit.com/r/BitcoinCA/comments/an3ues/further_proof_that_michael_patryn_omar_patryn/

I just started reading up on this situation and I haven't had a chance to verify the claims being made in this thread, but if they're true....... Wow.

The entire situation looks shady as heck.

WhenIVoteIUPVote 4 months ago

Thats $250 million in Canadian pesos

xenokilla 4 months ago

More info

Rnee45 Low Crypto Activity 4 months ago

I barely have a few thousand in crypto and even I have a contingency in the event of my death.

Ukinfukov_ 4 months ago

This is a result of decentralized banking which is the driver for bitcoins. Too much risk and uncertainty. Just like Forex trading with brokers outside of institutional trading.

dantrimental 4 months ago

You seem to be misinformed. QuadrigaCX was centralized. This is the result of centralizing. Bitcoin is decentralized, but that doesn't stop individuals from storing theirs in a centralized place.

Ukinfukov_ 4 months ago

Sorry that’s what I meant. Traditional banking is centralized and is regulated. Forex and bitcoins is unregulated. Yet in this situation the ceo was the single point of failure as he was the only one with the credentials. Hence the risk of a trading financial instrument in an in regulated sector of currency trading

yaksbeard 4 months ago

tbh this is sounding less and less like a single point of failure and more and more like a planned exit scam.

The_Purple_Tomato 4 months ago

https://www.reddit.com/r/BitcoinCA/comments/an3ues/further_proof_that_michael_patryn_omar_patryn/ I haven't had a chance to verify any of this yet, but it looks pretty interesting. The circumstances surrounding this are pretty shady.

xenokilla 4 months ago

seems more like an Exit Scam at the moment, but we'll see.

yaksbeard 4 months ago

the most interesting part of this extremely crazy story is the history of the cfo.

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yaksbeard 4 months ago

never knew these guys were based out of novascotia... i guess not surprising that something like this happened... they apparently had some really shitty operating procedures. some of the stuff i heard about them just made me shake my head... like people being able to withdraw fiat from the exchange.... and be sent envelopes literally filled with cash via canada post

what a shitshow.... kinda feel bad for all the people who had funds tied up in there

edit for reference:

https://www.reddit.com/r/BitcoinCA/comments/70ib1l/quadriga_cash_withdrawal/

also edit for anyone who is into this whole bit of news (possibly too geeky for most people):

@zeroresearchproof/quadrigacx-chain-analysis-report-pt-1-bitcoin-wallets-19d3a375d389">https://medium.com/@zeroresearchproof/quadrigacx-chain-analysis-report-pt-1-bitcoin-wallets-19d3a375d389

there are rumors floating around that quadriga was not liquid.

ps: kind of surprised this showed up on the novascotia subreddit :P

EMP19E 4 months ago

Who goes to India with Crohn's disease definitely something going on here

poorpinoygolfer 4 months ago

This, my friend, is how you HODL.

SoulWager 4 months ago

I think if you're leaving money in an exchange longer than it takes to complete a transaction, you're missing the point of cryptocurrencies.

Rainulf99 4 months ago

did they try password >

WhackOnWaxOff 4 months ago

It’s almost like this entire “cryptocurrency” thing is a scam or something.

corrawin 4 months ago

So what do you use crypto for anyway besides buying drugs?

Psychofant 4 months ago

[Ransom money!](https://www.nytimes.com/2019/01/10/world/europe/norway-kidnapping-monero.html)

billdietrich1 4 months ago

Well, how could the only guy who knew the password anticipate suddenly getting hit by a ... Crohn's disease ?

Witgang 4 months ago

Yep, thats why i wont touch the stuff

cccmikey 4 months ago

So, get your mining pool to mine for the password then. A gazillion guesses a minute should be able to find most passwords.

kelloggj 4 months ago

What a fucking world we live in.

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__WhiteNoise 4 months ago

Surely they can afford a forensics team to recover something that speeds up a crack.

nebula828 4 months ago

Some variation of POE

Envidias 4 months ago

Well I just got fucked for about 10k.

Soul82 4 months ago

Shdnt this be a TIFU thread?

aharper_11 4 months ago

Password: SuKitLOserS

biblesilvercorner 4 months ago

This is why I invested in v-bucks instead

livefrmhollywood 4 months ago

Okay, passwords are crackable, right? They might have to buy some super computer time, but Thats totally worth it when there's 190 million sitting on the other side.

Fromthedeepth 4 months ago

Sure, realistically in a couple hundred years of continuous brute forcing someone very persistant can crack it.

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