Although Canada is known for maple syrup, snow-clad mountains, sweeping forests, and most of all, its nice people, the local Bitcoin & crypto industry hasn’t been all too chill in recent times.
Canada’s Leading Bitcoin Platform In Hot Water
QuadrigaCX, Canada’s leading exchange that has long been victim to qualms, suddenly bit the dust on Monday, as the company’s landing page was replaced with a harrowing, yet seemingly innocuous “status update.” In a statement from the company, purportedly run out of Vancouver, it was divulged that the exchange was “down for maintenance,” noting that it would keep its clients updated as “we know more.”
While sudden maintenance is a possibility, especially in a technologically nascent industry like crypto, Quadriga’s history in this industry has got some traders running for the hills. On the platform’s official subreddit, users quickly questioned the exchange’s underlying motives. One user joked that by depositing money & funds onto Quadriga, he was effectively throwing all his money “on the roulette wheel,” quippingly asking if the ‘dealer’ is going to spin black or red.
Others took this debacle with a bit more cynicism, with a handful noting that they would be contacting local police and/or the RCMP, along with the company’s legal representation and related entities. Some even took time to remind the Canada upstart’s customers of the local suicide prevention line, accentuating the growing sentiment that “maintenance” was just a cover-up for an “exit scam.” And while onlookers would claim that such action is too fast, too soon, they have reason to doubt Quadriga’s legitimacy and intentions.
More specifically, in a statement released by Jennifer Robertson, the wife of exchange chief Gerald Cotten, it was revealed that Cotten purportedly died in India. Although death has touched all of humanity, meaning that Cotten’s disappearance isn’t an impossibility, many quickly asked for evidence, and what would happen with the exchange next.
The statement purportedly claimed that a shareholders meeting would be held… mere days ago. But since that date, Friday, no minutes/transcript was divulged, nor news regarding the direction that Quadriga would be taking. This eerie timing of the founder’s death, an announcement of said death, a supposed shareholders meeting, and the sudden maintenance session has led many to believe that things aren’t as they seem.
QuadrigaCX’s Financial Qualms
All this comes after Quadriga has been struggling with financial qualms for months, nearly a year. After struggling with deposits for months on end, Quadriga was revealed to have over $28 million frozen in Canadian banks in November. Per a report from The Globe And Mail, a leading outlet in the North American nation, the Canadian Imperial Bank of Commerce (CIBC) froze five accounts that were linked to Costodian Inc., Quadriga’s payment processor, owner Jose Reyes, and 388 Bitcoin-friendly clients.
While further reports on the matter claim that the sum has been handed over to the Ontario Superior Court, which will see a judge determine what to do with the funds, many distressed investors have still taken to Twitter, Reddit, and other social media outlets en-masse that they have yet to receive their Bitcoin withdrawals.
Title Image Courtesy of by shayd johnson on Unsplash