California Engineer Loses Life Savings of $422,000 After Using QuadrigaCX for Remittance

Article by · February 11, 2019 ·

The entire life savings of a California-based engineer was lost following the use of QuadrigaCX’s cryptocurrency exchange for remittance.

According to an interview with Bloomnerg, Tong Zou aged 30, stated that October 2018, he opened a withdrawal request at QuadrigaCX. He claimed that he was making arrangements to move to Canada at then and he thought he would save some money by using a cryptocurrency exchange for remittance. Hence, for a quick fiat withdrawal, he bought bitcoins in the US and sent them to his Canada-based Quadriga CX exchange account.

“I wasn’t using it for trading — I just wanted to move my money over to my Canadian bank account,” Zou noted.

$190 MILLION GONE

However, following the announcement made by QuadrigaCX that it is in a state of insolvency, the withdrawal requests made by Zhou and other 115,000 people couldn’t be granted. The exchange declared that about $190 million worth of cryptocurrencies couldn’t be accessed following the unexpected death of its founder, Gerald Cotton while traveling to India for humanitarian service. Based on the report, the only person who could access QuadrigaCX’s cold wallets is Cotton. The exchange concluded to terminate services and filed for Creditor Protection at a local court following Cotton’s demise.

However, the wait is a nightmare for clients like Zou. The information he gave Bloomberg was that he had moved to Vancouver already. However, he could not afford himself a decent apartment considering that all his savings went into QuadrigaCX. Also in the meantime, he was intending to hunt for a job as he survives on his life savings and this currently seems impossible.

“It’s all my savings, so I’m just living on what little I have left and trying to start over,” Zou stated. “It pretty much took everything away from me […] I was going to use that money for a deposit on an apartment, but now I can’t do that anymore. And now I’m currently searching for a job, so it’s kind of a bad time for me.”

IS HELP COMING?

Zou among other clients of QuadrigaCX is currently in touch with each other through a Telegram messaging group. Bennett Jones LLP and McInnes Cooper were hired NY the victims to represent them in the Supreme Court of Nova Scotia in Quadriga’s ongoing creditor protection proceedings. Their case will be read at 0930 local times on February 14.

In the meantime, there are controversies among the Canadian state securities regulators as to whether or not they are liable to investigate QudrigaCX. The British Columbia Securities Commission (BCSC) explained late on Friday that an inquiry against the cryptocurrency exchange would not be initiated by them. But, the Ontario Securities Commission (OSC) stated almost 24 hours afterward that it was “looking into the matter.”

Clarification was not made by the commission as to whether or not a formal investigation into the $190m scandal would be initiated.

 


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