QuadrigaCX: One customer hopes for $ 422,000
It's one of the terrible news that has shaken cryptonomy for a few days now. As we reported on February 1, there was a rumor surfing the net: QuadrigaCX, the CEO of Canada's largest Exchange, has died, along with the private keys to the company's hardware wallets; 144 million US dollars of the 115,000 customers were irretrievably lost. The case took on the typical scandal dynamics, the rumor mill bubbled, some were anxious to keep the cauldron glowing, others to take it from the fire.
According to coinmarketcap.com, there are currently 237 listed Exchanges, including recently was the said called QuadrigaCX. The scandal should lose momentum. As CriptomonedaseICO further pointed out in the above mentioned article, it is important to have the private keys of its wallets. Those who do not do so, ie savings continue to stock exchanges, is in danger of being placed in a row with the 115,000 affected here. One of those unlucky ones is Tong Zou, a 30-something former software developer in Silicon Valley for Walmart and BitTorrent. Zou was interviewed by Bloomberg.
The case Tong Zou
Tong Zou wanted to reorientate himself professionally in Vancouver, Canada. He wanted to send his savings worth more than $ 400,000 in an American bank account to a Canadian bank account. For this he took the detour via Bitcoin. He bought Bitcoin on an American platform, sent it to his QuadrigaCX account and from there he wanted to convert it to Canadian dollars. Why he chose this detour remains unclear. Anyway, he wanted to buy a real estate from the money, Zou said. QuadrigaCX did not comply with this demand for months. "The money is still not in my account," Zou asserts.
Zou has now contacted other law firms Bennet Jones LLP and McInnes Cooper. As we further reported, the company now also looks over the shoulders of the auditing firm Ernst & Young. There are two approaches to compensate customers: on the one hand on finding the private keys, on the other hand, on the proceeds of a sale of a company. As for the first strategy, there seems to be little hope. For example, analysts from both Proof of Research and Elementus have independently come to the conclusion that the said hardware wallets apparently never existed.
As for the death of Gerald Cotten, everything is unanimous. Although two documents have emerged that make death seem more likely. But strange coincidences, such as the will issued 12 days before his death, or the responsibility for a company's deposits in just one hand, still raise questions. This opinion is also the highly decorated US serviceman Steve Bunnell:
In the death of Gerald Cotten, there are still some inconsistencies that still need to be investigated. However, regardless of whether the assets on QuadrigaCX have fallen into an administrative error or the problem goes deeper, the situation illustrates how important it is for investors to use a trusted exchange that is also concerned with deposit insurance. There are many of these dubious exchanges spread across the globe.
An influential Exchange would also "not give their private keys into the hands of one person, but set up a multi-signature wallet with, say, five keys. In order to access the wallet, it would then need three of the five keys. So none of these five people is indispensable. "
To what extent this incident will be corrected remains to be seen. But a lesson is already being taught: Who Be your own bank says must, too Own your private key say.
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