Quadriga CX Just Won't Go Away
March 27 2019 - 12:57PM
InvestorsHub NewsWire
Bitcoin Global News (BGN)
March 27, 2019 -- ADVFN Crypto NewsWire -- By now, some level
of clarity should have been achieved on how to resolve the Quadriga
CX debacle, right? In an opinion piece for CoinDesk today, one of
Quadriga’s former attorneys clearly stated that most of the current
news pieces on Quadriga have little basis in fact.
With that in mind, it is easy to
wonder what the truth is about the alleged loss of millions of
customer funds. Before we get anywhere close to that point, it is
important to clear up certain matters about how the exchange was
operating. According to Christine Duhaime, who is the lawyer in
question, Quadriga was regulated in just about every possible way
that a Canadian cryptocurrency exchange can be.
Furthermore, they even had what is
called “cold storage insurance,” which appears to mean that funds
that were kept with Quadriga were insured in the event of any loss
that they would be deemed responsible for.
So, why then, was its’ CEO the only
person to possess the private keys to what has been estimated to be
about $190 million in crypto around the time of his death?
Why wasn’t some other measure in place to prevent such a major loss
from occurring? What is clear from Duhaime and CoinDesk is that a
lot more stakeholders are likely still involved, beyond the
Quadriga employees and their creditors. According to the article
mentioned above, before the incident, Quadriga had already split
into four entities, which means that it still has four groups of
shareholders.
On top of this, Duhaime was quick
to say that there are in fact a horde of Quadriga related records
including some that likely prove the cold storage insurance. She
also claims to have some level of access to Quadriga records,
despite the fact that she was let go by the firm before the
incident.
In the end, the key takeaway from
anything Duhaime had to say is easy to grasp. If we, as a world, do
not come together to find a better way to regulate cryptocurrency
exchanges, then events like this will continue to
happen.
By: BGN Editorial Staff
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