Cryptocurrency often breeds a great deal of uncertainty. After all, many places still view it as the new kid on the block(chain). Clearly, respect for cryptocurrencies has increased. After all, some governments and companies are going through great lengths to attempt to control it and profit from it. There is still a lot of bias against using these paperless currencies; some still look down at cryptocurrencies with suspicion and distrust. This is especially due to the fact that cryptocurrencies are decentralized and often anonymous. Nevertheless, the adoption and value of those currencies have skyrocketed. But soon, Canadian company Quadriga CX may not find much of either.
To some, crypto is a new way of accumulating wealth. To others, it’s just a way of buying and selling stuff anonymously. Whether you think highly of it or not, one thing is for sure: Cryptocurrencies are here to stay. However, the Canadian exchange platform Quadriga CX has been facing a great deal of controversy.
The latest chapter of this novel began to unfold early this year when the company had to file for creditor protection. The only person who knew the respective passwords of their bitcoin wallets, their CEO Gerald Cotten, passed away during a trip to India.
Quadriga CX has been going through great turmoil since this event. Unfortunately, the company found itself locked out from its funds entirely. Thus, they may never resume business again. Nevertheless, they didn’t give up easily, going to great lengths to regain access to this Bitcoin wallet. But unfortunately, their efforts to recover the 190-million-dollar account failed.
Clients in Panic
The unexpected death of Mr. Cotten has caused Quadriga CX’s clients, who had money invested in this company’s bitcoin vaults, to panic. The company, locked from its own Bitcoin reserves, was unable to give money to its respective clients.
Now, a few dozen former Quadriga CX clients and investors with the help of law firms are suing the company to attempt to get their money back. Yet, their cases are being denied after Quadriga CX received 30-day protection against any lawsuit. Another dozen hired self-proclaimed crypto detectives to try to trace their money back. However, they too are still in the dark, waiting for answers and money alike.
Although things certainly look bad for Quadriga customers, some optimistic clients describe this occurrence as a “learning experience”. One stated: “I don’t regret purchasing cryptocurrency. It was always a speculative investment for the long term”. Nevertheless, he does admit to regretting not moving his money off Quadriga’s exchange service before their CEO passed away.
Last Tuesday, Nova Scotia Supreme Justice Michael Wood accepted applications from 4 law firms to represent the interests of former Quadriga Coin Exchange service in the case.
Is the Company Officially Dead?
According to the judge, the entire company and its activities are currently suspended and may never have a chance to resume, due to the circumstances. The business completely relied on Cotten’s locked wallets. According to Wood, the future of Quadriga CX “remains to be determined”.
Former employees of Quadriga CX describe Cotten as a man with fine taste who believed that crypto mining was going to be “the next California gold rush”. He saw in Bitcoin an opportunity to create a new form of day trading and make a fortune.
The futures of Quadriga CX, its clients, and its investors remain unknown. But given the cryptic nature of Bitcoin, the company needs a miracle to stay afloat during this storm.
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