A former BitTorrent and Walmart software engineer Tong Zou, a Canadian citizen who moved to the U.S. when he was 23 years old, has lost all of his life savings on Canada's largest crypto exchange QuadrigaCX
On February 1, an affidavit filed with the Nova Scotia Supreme Court claimed that the CEO of QuadrigaCX Gerald Cotten passed away with the sole control over the exchange's cold wallets containing $ 150 million worth of crypto
1; Jesse Powell (@jespow) February 3, 2019
Following the incident, it has become unlikely for the victims of the QuadrigaCX case to receive their money back.
How Zou Lost His Life Savings on a Crypto Exchange
In late 2018, after working for more than 7 years for major US-based corporations, decided to move to Canada, settle down and purchase an apartment.
Throughout his time in the US As a highly regarded software engineer, it would get $ 422,000 in savings.
And now I'm currently searching for a job, so it is a bad time for me, ”Zou said, speaking to Bloomberg in an interview.
Due to high conversion rates and fees involved in transferring his savings to Canada, Would convert the funds to crypto, deposited to QuadrigaCX, converted it to Canadian dollars, and filed a withdrawal request in October 2018.
After four months, the QuadrigaCX incident was publicized, which industry experts including Kraken CEO Jesse Powell believe it to be "unbelievable," Would have been able to gain access to his savings again.
It pretty much took everything away from me. I was using it for trading – I just wanted to move my money over to my Canadian bank account. What I didn't know was that my withdrawal would be pending or incomplete and it never got deposited in my bank account. I've been waiting four months so far, ”he said.
So far, more than 115,000 users have been affected by the case.
In recent weeks, researchers have claimed that Quadriga may not even have
The Wall Street Journal reported that independent researcher James Edwards did not find any evidence to support the existence of a bitcoin cold wallet allegedly containing $ 92.3 million worth of BTC.
Similarly, Taylor Monahan, the CEO of MyCrypto, said that she also could not link any of the main wallets of QuadrigaCX to an ethereal cold wallet or a reserve.
"I'm seeing NO indication of Quadriga ever having cold / spare wallets for ETH. ”
One last thing. Here's an example of an address that * could have been cold storage: 0x185a3c26a1a5deb37c7fd02007b0fde19db61df3
– It's empty now (19459016) – If every "cold storage" is this size, thats 100+ accounts
– IT'S EMPTY NOW
– Taylor Monahan (@tayvano_) February 5, 2019
No Protection From Regulators
In a statement provided to Bloomberg, the British Columbia Securities Commission (BCSC) said that QuadrigaCX does not fall under the jurisdiction of the coverage of the commission.
"[BCSC] does not currently have any indication that Quadriga CX, the crypto asset trading platform, was trading in securities or derivatives or operated as a marketplace or exchange under British Columbia securities laws, ”said the commission.
Given the ambiguous regulatory status of cryptocurrencies and digital asset exchanges in Canada, victims of the QuadrigaCX case could possibly not obtain their money back.