How one CyptoCurrency lost everyone's money

[BHW-Help]

We all know that CryptoCurrency is volatile. That's part of the draw for a lot of people. But a week or so ago, news hit the headlines of an unexpected development for one bitcoin company.

Quadriga, based in Canada, have lost all of their customers' money. Not in the sense that someone has taken it, but, more ridiculously, they can't actually find it.

Unfortunately, the founder died unexpectedly from complications related to Crohn's disease, and he was the only one at the company who could access the funds or even knew where they were.

It's left the customers' combined C$250m in limbo, and has unsurprisingly raised some questions around the business practices that led to a situation without any failsafes. Some people are even claiming the founder faked his death.

What do you make of it all? Is it just a case of naivety gone wrong or do you think there's something more nefarious afoot?

 

[sobolanu]

This can't be real, there has to be something behind all this.

 

[Neonetwork]

It might be real, the owner might be saving all the crypto funds in cold storage and only he might know where it is.

However, there might be one source where that cold storage is there. an deep research will help finding the currency wallet.

 

[LinksDomains]

Some people are even claiming the founder faked his death.

So is he dead or?

 

[sobolanu]

Also wanted to post this :

If anyone is a detective at heart...

 

[CryptoKujira]

Kraken put out a $100,000 reward to anyone that can recover the funds.

And Quadriga apparently had insurance.

I don't think the story is over yet.

 

[Deleted member 877043]

So is he dead or?

That’s the Million Dollar question.

This whole Crypto thing is a bit of a Wild West.

 

[LinksDomains]

That’s the Million Dollar question.

This whole Crypto thing is a bit of a Wild West.

The cryptos are made for speculation and trading. What do you expect?

 

[TheVigilante]

The reason why this crypto shit scares me

 

[LinksDomains]

Actually before all cryptos appeared I thought that it will be better if anyone had control over your money and anybody knows what you are doing. But from what’s happening these years I’m see i was not right

 

[TheVigilante]

Actually before all cryptos appeared I thought that it will be better if anyone had control over your money and anybody knows what you are doing. But from what’s happening these years I’m see i was not right

What you mean?

 

[mylastvacation]

Source: https://blog.kraken.com/post/2155/were-offering-a-100000-reward-for-discovery-of-quadriga-coins/

 

[Deleted member 15724]

This whole thing looks like an American Greed episode in the making

https://www.theglobeandmail.com/bus...served-time-in-us-for-role-in-identity-theft/

 

[Veil123]

Kraken put out a $100,000 reward to anyone that can recover the funds.

And Quadriga apparently had insurance.

I don't think the story is over yet.

A company offering insurance for money based on crypto?? Oh well...

 

[CryptoKujira]

Indeed. Really starting to shape up like a movie script. Time to pitch it to some movie execs.

 

[LinksDomains]

What you mean?

I mean that this privacy and various ways to trade with cryptos anonymously are obviously bad for all of us

 

[USA282]

There are scam projects and there are some real solid projects. It doesn't matter if its a fiat based or crypto project. In the early days of internet, it was a pretty easy thing to hack into the websites by doing a simple sql injection. Majority of the websites were vulnerable to such attacks (even. In fact even I was able to hack into some websites after doing few hours of research on the internet. That was like 14 years ago when I was 13. In short, it's not wise to blame the internet for this issue. Any new tech keeps on getting better with time so the most important thing is to predict the magnitude of impact that technology is going to bring in the future. That's basically how I determine the value of blockchain and cryptocurrencies. Just do your research and stay away from all sorts of shady crypto related projects and you should be fine. This advice is applicable on both fiat/crypto based projects. Why bother with Quadriga if we already have Binance, Coinbase and many other trusted exchanges.

 

[Prehisto]

First of all, why have you written so mislieading thread topic, what "cryptocurrency"?
You are talking about ONE exchnage with variety of coins not ONE cryptocurrency.

i red several artilces regarding this and it seems that it was an exit scam. Owner went to INDIA, where everythign could be easily bought even death sertificates and died. Also that he is th eonly one holding the keys, what are the chances that their risk analysis was so weak.

 

[Metatrons Cube]

I've received emails from a number of people in the cryptocurrency industry regarding Quadriga recently, and also from Kraken (crypto exchange).

They're offering $100,000 reward for assistance from blockchain experts to help track/locate the missing $170m - pretty shitty deal if you ask me considering the size of the funds being attempted to recover. They're actually working with the FBI directly to locate the funds.

General consensus is not that this is legit. Many people who know the crypto industry well are suspect on the way that this went down, and I'm one who thinks that dying in whatever part of India/Pakistan that was is particularly convenient considering how much harder it would be to fake your death in Canada, for example. The show continues.

Edit: Just saw that Kraken was already mentioned above as well.

 

[Jklmno]

There are scam projects and there are some real solid projects. It doesn't matter if its a fiat based or crypto project. In the early days of internet, it was a pretty easy thing to hack into the websites by doing a simple sql injection. Majority of the websites were vulnerable to such attacks (even. In fact even I was able to hack into some websites after doing few hours of research on the internet. That was like 14 years ago when I was 13. In short, it's not wise to blame the internet for this issue. Any new tech keeps on getting better with time so the most important thing is to predict the magnitude of impact that technology is going to bring in the future. That's basically how I determine the value of blockchain and cryptocurrencies. Just do your research and stay away from all sorts of shady crypto related projects and you should be fine. This advice is applicable on both fiat/crypto based projects. Why bother with Quadriga if we already have Binance, Coinbase and many other trusted exchanges.

All cryptocurrencies are Shady because cryptocurrencies cannot compete against e-money such as Alipay and WeChat Pay. In many countries, many local internet companies as well as bank launch their mobile e-money and grab market share. Please show me example of one nation where cryptocurrencies beat mobile e-money!!!