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I had 87k in my quadriga account. Two months ago, i put request to withdraw the funds. I received 20k but have another 67k outstanding.

First the issue was that CIBC was holding their funds. After a court battle, they got the funds released to them.

Then BMO refused to take their funds, even though the drafts were issued by the courts.

It seems that they keep coming up with new excuses as to why we can't get our money.

Do you guys think that i've been scammed? Is there any way I can tell if they are legitimately trying to get us our money?

They did post a court papers that ruled in their favor. Is there any way we can find out if those papers are legitimate?

https://s3.eu-central-1.amazonaws.com/files-qcx/18.12.03+-+Order+of+J+Hainey.pdf
 

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I can't speak about the company or the process in any way, but there's a record of the case on the Superior Court of Justice from November.
I can't find this December ruling (but I'm not familiar with the process of when/if motions are searchable).

You can see the November court details here, by searching for the Court File number: CV-18-597240-00CL
http://www.ontariocourts.ca/search-canlii/scj/scj-en.htm
 

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Google.........quadriga reddit.

It doesn't look good. Many people are trying to get their cash out. Some as much as $500,000.

It appears the founder and CEO passed away December 9, 2018.

https://www.quadrigacx.com/gerald-cotten

Some of the other bitcoin related companies are in deep trouble as well. The company that makes the bitcoin computers is heading for bankruptcy. The founder and CEO of that company is a long time bitcoin advocate.

With all the people trying to get their money out of the different bitcoin companies, I am surprised the price is still holding at $3500 USD or so.

But the price is largely manipulated and companies simply delay or refuse to allow withdrawals, or in some cases have issued "tokens" to serve as IOUs.
 

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I've dealt with Quadriga for 18 months or so, never in the amounts you have though.

I think most of their problems are created by banks, and not necessarily themselves. In the past I've had significant trouble funding my account.
 

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The entire crypto currency space is pretty much a con game, where the exchanges are a big part of the (systemic) scam. Throughout the crypto currency system, value and dollar worth has been vastly overstated due to a number of common practices. These forms of manipulation have inflated the price for a long time, and the inflated price was used to hype and market to more people, to draw even more cash into the con.

I discovered this when, over a year ago, one of my coworkers started attempting to "cash in" several hundred thousand $ of bitcoin. Each exchange he went to ended up giving him a few thousand bucks but told him he can't liquidate the rest. This is when I realized that all the bitcoin value was fake and overstated -- you can't actually get the money out.

One of these practices that I suspect is that exchanges probably haven't been keeping all the coins earmarked as customer owned. In a period of deleveraging liquidation like we've been in for over a year now, that means that exchanges will struggle to produce cash on demand, because they don't actually have the money (coins).

I can't say whether that's what's happening in your case, but given the history of bitcoin exchanges elsewhere, it's a possibility. I've been suspicious of QuadrigaCX ever since I discovered it operates out of the Bahamas and does not have a proper Canadian business footprint.
 

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Scams often follow the same routine and you can tell where you are as a customer by what they are telling you.

1) Some operate in countries where there is little or no regulation, but it isn't required. Regulation in Canada is basically toothless, fines are often ignored and it takes years for any resolution which would be pennies on the dollar at best.

2) The scammers have some kind of exciting new way to earn fabulous amounts of money.........without ever picking up a shovel or packing a lunch box.

3) When the scam has run out the mathematical probability of attracting more "investors", they start pulling the plug on the whole scam and start moving on to their next one.

4) The first thing they claim is they are having problems with their bank, another bank, or some other form of financial problems involving all the money.

5) They tell investors they have hired a top level law firm (they often do, but to represent themselves........not investors).

6) They tell investors the legal fees are mounting and ask each investor to "contribute" to the cost to enable a successful return of investment for everyone.

7) After they have milked everyone for as much as they can, they simply disappear. The rented office is cleaned out. The phones are shut off. Nobody answers any mail or questions.

8) At this point, even the most ardent advocates for the scam start to realize they have been conned and hope the government will bail them out.

9) If they are investigated, charged and convicted by the regulator, years from now they will receive a fine which they simply ignore.

If it is a scam..........and I have no proof that it is, it will be easy to follow the normal pattern of events for such things.
 

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The entire crypto currency space is pretty much a con game, where the exchanges are a big part of the (systemic) scam. Throughout the crypto currency system, value and dollar worth has been vastly overstated due to a number of common practices. These forms of manipulation have inflated the price for a long time, and the inflated price was used to hype and market to more people, to draw even more cash into the con.

I discovered this when, over a year ago, one of my coworkers started attempting to "cash in" several hundred thousand $ of bitcoin. Each exchange he went to ended up giving him a few thousand bucks but told him he can't liquidate the rest. This is when I realized that all the bitcoin value was fake and overstated -- you can't actually get the money out.

One of these practices that I suspect is that exchanges probably haven't been keeping all the coins earmarked as customer owned. In a period of deleveraging liquidation like we've been in for over a year now, that means that exchanges will struggle to produce cash on demand, because they don't actually have the money (coins).

I can't say whether that's what's happening in your case, but given the history of bitcoin exchanges elsewhere, it's a possibility. I've been suspicious of QuadrigaCX ever since I discovered it operates out of the Bahamas and does not have a proper Canadian business footprint.
Quadriga is registered and located in Vancouver. Has been for as long as I've been dealing with them.

And you are aware that no one is required to store (or keep) their bitcoins with an exchange right? They can be stored offline or even in a paper wallet. They can also be sold directly to individuals (face-to-face) if there is a problem withdrawing funds from an exchange.

Any serious bitcoin investor/trader learned a long time ago not to trust exchanges. They can fulfill some functions, but never trust them. Doesn't make the underlying crypto assets a scam (not necessarily anyways)



The reason why Quadriga is very likely having problems with chartered banks is because it also prevents them from accepting your money. It's been a problem for a while now. If it was a problem just internal to quadriga, funding an account would be no problem at all.
 

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The entire crypto currency space is pretty much a con game, where the exchanges are a big part of the (systemic) scam. Throughout the crypto currency system, value and dollar worth has been vastly overstated due to a number of common practices. These forms of manipulation have inflated the price for a long time, and the inflated price was used to hype and market to more people, to draw even more cash into the con.

I discovered this when, over a year ago, one of my coworkers started attempting to "cash in" several hundred thousand $ of bitcoin. Each exchange he went to ended up giving him a few thousand bucks but told him he can't liquidate the rest. This is when I realized that all the bitcoin value was fake and overstated -- you can't actually get the money out.

One of these practices that I suspect is that exchanges probably haven't been keeping all the coins earmarked as customer owned. In a period of deleveraging liquidation like we've been in for over a year now, that means that exchanges will struggle to produce cash on demand, because they don't actually have the money (coins).

I can't say whether that's what's happening in your case, but given the history of bitcoin exchanges elsewhere, it's a possibility. I've been suspicious of QuadrigaCX ever since I discovered it operates out of the Bahamas and does not have a proper Canadian business footprint.
QuadrigaCX may have a legal presence in Vancouver as Onagoth says, but when I went investigating it last year I found that its Vancouver physical presence was minimal, possibly just to have a mailing address. I found that its servers were operating out of the Bahamas. I also found evidence that their principals (one of whom is now dead) were spending significant time physically in the Caribbean. I didn't like the look or smell of it.

An update: QuadrigaCX has been offline for 2 days now. They claim it's for maintenance, but this all has happened after ongoing problems with customers getting their money out as described in this article.

I wish good luck to anyone who is owed money by them.
 

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Quick additional thoughts for anyone who might have significant money at risk here. First, it's probably worth investigating whether this person really died. Second, you might want to start looking into legal options.

It may be worthwhile hiring a private investigator to find out (a) if this person really died, (b) which people associated with the company actually exist within Canada and could be sued, should it come to that.

Think about it: they operate out of the Bahamas, the money gets frozen when CIBC gets suspicious, then the CEO "dies" while in India just when withdrawals stop working? Sounds extremely suspicious to me. Where's the proof he died? Might want to get in touch with local police or RCMP as a starting point.

If you don't want to bother with a lawyer or private investigator, perhaps you can use Google and archive.org to locate past press releases or other public information (or business registration info) to locate the lawyer or PR firm who has worked with the company. Find a real person. Go together with a buddy and pay their lawyer/representative a visit. You might want to bring a hidden camera so that you can capture footage of what their representative looks like, which could be useful if the police ever need to look for them. Another idea would be to get in touch with CBC's Marketplace or Fifth Estate to get the professional journalists to start looking into this.
 

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Noble but ridiculous suggestions imo james, especially the Marketplace/Fifth Estate suggestion. You're talking about the cryptocurrency world here.
 

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Well, the whole crypto currency space is ridiculous. But if I thought someone just ran off with 60K of my money, I would absolutely start looking for someone to sue.
 

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Well, the whole crypto currency space is ridiculous. But if I thought someone just ran off with 60K of my money, I would absolutely start looking for someone to sue.
Somehow I doubt the depth of your knowledge when it comes to cryptos. Have you ever bought or sold them? Have you reviewed the white papers? Do you have any experience with wallets either electronic or paper?

Anyone who outright declares "the whole crypto current space is ridiculous" seems to me to have a real lack of understanding of the technology and it's capabilities.

I don't know if Quadriga is actually dead now...but anyone who held these assets should have been smart enough to store them separate from the exchange after the whole Mt Gox incident.
 

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Anyone who outright declares "the whole crypto current space is ridiculous" seems to me to have a real lack of understanding of the technology and it's capabilities.
No, it's more like anyone who declares that cryptos are worth anywhere near their current valuation has just enough understanding to fool themselves but nowhere near enough to see the whole picture clearly.
 

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No, it's more like anyone who declares that cryptos are worth anywhere near their current valuation has just enough understanding to fool themselves but nowhere near enough to see the whole picture clearly.
Says who? You don't know the fair value of any crypto any better than I do. Value is determined by the market and right now, bitcoins value at least seems to be stabilizing.

And besides that, there is fundamental value in the blockchain technology. The entire crypto space includes far more than just the crypto currencies and coins that trade on exchanges.
 

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The technology is interesting, and much of it is quite sound. The math is sound (hash algorithms, cryptographic routines, etc). I'm not saying any of that is ridiculous.

What I'm calling ridiculous is this ecosystems of shady operators across the world, tons of exchanges that have turned out to be frauds, theft, outright scams. I also think it's ridiculous that such an experimental and unproven new tech (and infrastructure) has been accepted as something to invest in. There is a cult of people who think it's equivalent to precious metals, or that it's going to replace traditional monetary systems.

I'm hearing stories of people who have bought into this hype and poured huge amounts of money, perhaps all their life savings, into crypto currencies... believing the promises of giant returns. This is what's ridiculous.

For me, it's been interesting to watch. I've speculated a bit, bought $300 in coins (now worth $90). I've downloaded the entire bitcoin block chain and filled up an entire hard disk with it. I'll keep my $90 worth of coins, since it's infeasible to sell it anyway. Yeah, it's kind of interesting, and it has potential, but the current environment and ecosystem for all of this is just ridiculous -- it's impractical, unstable, and the space is full of crooks.
 

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They've filed for bankruptcy protection in Nova Scotia.

https://www.quadrigacx.com/

Cryptocurrency exchanges are not what they seem to be. They can only give out as much money as they take in minus fees, hacks and whatever else they lose. If people buy $1M of bitcoin through Quadrigacx, and the price doubles, and they try to withdraw $2M, where does the extra $1M come from? It can only be produced if new people are willing to buy it. Unfortunately, it looks like the liquidity musical chairs ended at Quadrigacx. Hope no one here had money with them.
 

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And they are "attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets."
Oops.
People wondering why the CEO Gerald Cotten who suffered from crohn's disease would travel to India of all places, and at this particular time. Oh, he was building an orphanage there. Died suddenly - or did he? Seems a reasonable place to 'get lost'. Speculation that up to $100 million is missing. Hmm, no obituary, no other details, a press release that is now gone.
This one smells worse than someone in India with bowel troubles.
Was it P.T. Barnum who said "there's a sucker born every minute"?
 

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Anyone who had significant money with them should find a lawyer and start trying to recover assets. I'm not sure at what threshold it becomes worthwhile to do that... perhaps over 20K exposure?
 

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From the Globe and Mail:

Dean Skurka, vice-president of finance and compliance at Canadian cryptocurrency trading platform Bitbuy, said he’s concerned that investors who still have money locked up in their Quadriga trading accounts won’t be able to regain all of their funds. Mr. Skurka previously worked in the restructuring and insolvency groups at Fuller Landau, James Williams & Associates and Crowe Soberman, and has been involved in many restructurings.

“These proceedings will result in a long process, which will likely result in end users experiencing significant loss,” Mr. Skurka said in an e-mail. “There will be a long road ahead for the remaining players to regain the confidence of Canadian consumers.”
https://www.theglobeandmail.com/business/article-crypto-exchange-quadriga-files-for-creditor-protection/
 

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Sucks for anyone who lost money...but seriously, how many exchanges have to go bust before people realize that you should never store any crypto assets at the exchange.

I guess it might have been a lot of get rich quick investors who didn't bother researching the history of bitcoin before buying.
 
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