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Twitter reacts to QuadrigaCX debacle

  • QuadrigaCX recently lost $190 million of their user’s money after their CEO died without telling anyone the private keys to the cold storage wallets. Many are calling this an elaborate scam.
  • FXStreet has compiled some of the best reactions to this debacle.

Joseph Young (Cryptocurrency reporter and analyst):

“Seeing how the QuadrigaCX situation is turning out, which may set a bad image for the entire crypto industry, I'm much more appreciative of exchanges that have prioritized security and investor protection for years.

Binance, Coinbase, Kraken, Gemini, and several others.”

Nathaniel Popper (Technology reporter at NY Times):

“We lost the $150 million in cryptocurrencies that we held for customers because our founder died and he was the only one with the passwords to the wallets. Welcome to the financial future!”

Meltem Demirors (Director of Development at Digital Currency Group):

“Beyond horrifying. canada's largest exchange @QuadrigaCoinEx 
- founder dies suddenly
- no one has private keys to wallets
- fiat balances inaccessible

operational security and continuity planning is ESSENTIAL - for both a business *and* an individual.”

Peter Todd (Applied Cryptography Consultant):

“Note: the people trying to pull off a QuadrigaCX exit scam could actually be the family and other employees, by hiding the fact that the cold wallet keys _are_ known.

__Not__ saying this is happening, but need to consider all possibilities fairly in the investigation.”

David Gerrard (Author of "Attack of the 50 Foot Blockchain: Bitcoin, Blockchain, Ethereum & Smart Contracts):

“Mt. Quadriga comedy gold withdrawals - someone notices that the notoriously "lost" Litecoin cold wallets are being drained by someone at this very moment”

Boxmining (Crypto Educator):

“QuadrigaCX case Update: Co-founder Michael Patryn has been a using a fake name. His real name is Omar Dhanani who was convicted of fraud (operating an online marketplace for identity theft) in the United States and was released in 2007. Identity not SAFU.”

Richard Heart (Founder at BitcoinHex):

“Apparently some qudrigaCX funds that "died" with the founder are already being laundered...”

The Hacker News: 

“Cryptocurrency exchange #QuadrigaCX claims to have lost $145 million after unexpected death of its CEO, the only person who had access to the offline wallets

Truth or Exit Scam? Question remains unanswered as some believe firm is lying about cold-wallets”
 

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

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