Engineer from California lost all their savings after the attempted money transfer through cryptocurrency exchange QuadrigaCX.
In an interview with Bloomberg thirty years engineer Tong Zou said that he had sent a request for withdrawal from the exchange in October 2018. At that time he was planning to move to Canada, a cryptocurrency exchange would help him in transfer of funds. Zou acquired bitcoins in the United States, and then translated them to your account on the QuadrigaCX, based in Canada.
"I don't traded on the exchange ― I just wanted to transfer own money to my Bank account in Canada."
However, the withdrawal requests made by Zhou and other 115,000 people met a dead-end after QuadrigaCX declared itself insolvent. According to representatives of the platform, access to the cryptocurrency in the amount of $ 190 million was lost after the founder of the exchange Gerald Cotton died suddenly during a humanitarian trip to India. He was the only person who had access to cold wallets QuadrigaCX. After his death, the exchange decided to cease to exist and filed a suit about protection of creditors in the local court.
But for users such as Zou, the waiting is a nightmare. The engineer told Bloomberg that his savings disappeared from the exchange after he moved to Vancouver. For this reason, he could not afford to buy a decent apartment. In addition, the lack of money that Zou was going to live, ruined all plans for the thoughtful search for a new job.
Currently, Zou and other users QuadrigaCX coordinate their actions through a special chat in Telegram. The victims turned to Bennett Jones LLP and McInnes Cooper to represent them in Quadriga’s ongoing creditor protection proceedings in the Supreme Court of Nova Scotia. The first meeting relating to the protection of creditors QuadrigaCX, scheduled for February 14.
Meanwhile, canadian authorities dealing with regulation of securities have different opinions as to whether they should bear the responsibility in the case of QuadrigaCX. On Friday, the British Columbia Securities Commission stated that it would not initiate an investigation against this cryptocurrency exchanges. The next day, the Ontario Securities Commission announced that "studying this issue". The Commission has not said whether it will initiate an official investigation into the scandal.
Users, in turn, accused QuadrigaCX that she faked the death of Gerald Cotton in order to steal funds from the cold wallets. Blockchain forensic experts also found that the exchange didn’t have any cold wallets in place.
On February 5, QuadrigaCX received a 30 days to deal with the problem. The exchange expects to gain access to Cotton’s laptop to return creditors their money.