The Profound Amateurishness of All Things Crypto
Canadian crypto exchange QuadrigaCX says it cannot repay most of $262 million in client holdings after its founder Gerald Cotten, the only person who knew the passwords to its “cold storage,” unexpectedly died in India in December 2018, Coindesk reported on Friday.
In a sworn affidavit with the Nova Scotia Supreme Court, widow Jennifer Robertson said that QuadrigaCX owes its customers some $262 million in both cryptocurrency and fiat money. QuadrigaCX has filed for creditor protection because it says it cannot access the funds stored in “cold storage”, just the comparatively smaller amount in a “hot wallet” used for transfers, CoinDesk wrote:
More here – Gizmondo
I am not convinced about crypto time will tell but only a fool would leave coins on an exchange.
I have friend who is heavily into crypto and has his funds spread across several private wallets
He says get you coins off the exchange as some less than ethical exchanges tell you have the coins when they don’t buy them so if everyone tried to cash in they could not do it
This is a variation of the old scam bucket shop futures brokers used to run. They would tell clients they had undertaken a trade in a given commodity without actually having placed the order. They operated on the principle that the majority of speculators were wrong so why bother actually placing the trade. And if the client was right good luck getting your money out of them.