Quadriga is another cryptocurrency exchange that saw millions of dollars disappear. In 2019, the exchange ceased operations and the company was declared bankrupt with $215.7 million in liabilities and only $28 million in assets.
What was most suspicious was just a month prior to their bankruptcy, Quadriga announced that their CEO, Gerald Cotten, had died from Crohn’s disease while doing volunteer work at an orphanage in India.
His body was never recovered, and many think he’s still alive. Living off the grid with the hundreds of millions he stole. Also, conveniently “volunteering at an orphanage in India” just sounds like a bullshit excuse for people to feel sympathy for him.
Following a 10-month investigation, the OSC released a report stating that the crypto company was indeed a Ponzi scheme.
“Clients entrusted their assets to Quadriga, which provided false assurances that those assets would be safeguarded,” reads the OSC report. “In reality [Gerald Cotton, Quadriga’s co-founder and CEO] spent, traded and used those assets at will.”
The main lesson from Quadriga, Mt. Gox, and dozens of other events is to avoid leaving your coins on exchanges if you aren’t actively day trading. The saying “not your keys, not your coins” should never be ignored.
KuCoin, Binance, Bitfinex, BitMex, Kraken, CoinCheck, BitGrail, Zaif, NiceHash, BitHumb, and dozens of other exchanges have also been “hacked”. And in the future, I’m sure the list will grow.