This seems like another Cryptsy to me, but improved. He may have looked at Big Vern's scheme (the CEO of Cryptsy, which left with all of the money to China I think, I forgot about this story) but he took it to the next level and decided to fake his death, in India of all places. The death certificate points to a pretty rare reason to die, usually people don't die from that.
It's just another reminder to keep your keys safe. We just had cryptopia the other day as well. These things will keep happening forever. It's just not possible to have an active trading account in crypto. You have to do your trading, and move funds to your wallet. Daytrading is impossible, just assume it, or assume the risk of full losses if the CEO "dies" or exchange gets "hacked".
Topic: Quadriga CEO Death - Real or fractional banking? - page 2. (Read 433 times)
I really can't fathom as to what happened to Quadriga CEO he might be faking his death for all we all and just trying to hide because he has embezzled huge amount of funds and can't return in back. There's another good thread regarding this issue here, https://bitcointalksearch.org/topic/unofficial-quadriga-cx-thread-984498. So let see how it goes because there's a lot of new evidence surfacing everyday.
I'm 99 percent sure his death is a hoax. "hurr durr our ceo died good bye 20,000 bitcoins" lol just no
Bet your ass they are trying to cover this up and all employees that worked for this exchange are using this death as an excuse.
many rumours about its, personally i am not trust this accident.too many people tempted when they looking big cryptocurrency asset in exchanges, even that their own CEO.much people be lier since cryptocurrency price very high. Bet your ass they are trying to cover this up and all employees that worked for this exchange are using this death as an excuse.
I'm 99 percent sure his death is a hoax. "hurr durr our ceo died good bye 20,000 bitcoins" lol just no
Bet your ass they are trying to cover this up and all employees that worked for this exchange are using this death as an excuse.
Bet your ass they are trying to cover this up and all employees that worked for this exchange are using this death as an excuse.
Let's look truth eyes. We are all humans and greed sometimes takes over. And this is not an isolated case, do not consider me, of course, biased, but it may well be that he wanted to be rich and that’s all.
I read this news today and was certainly a little surprised, but not much. Immediately it is obvious that he did not die. Everything was clearly planned long ago:
1) All coins are on cold media.
2) Only he had the password
3) Sudden death
Everything is obvious
1) All coins are on cold media.
2) Only he had the password
3) Sudden death
Everything is obvious
Not really. But the fractional banking accusations are true. Follow the money trail, we have a transparent ledger for a purpose.
Precise report at https://blog.zerononcense.com/2019/02/04/quadrigacx-chain-analysis-report-pt-1-bitcoin-wallets
Regarding his Death, this might be true or not, who knows. If there is no money left to make a run with he just really might be dead. Fractional banking even opens up a remote possibility of having gotten killed.
Some interesting findings from the article:
Quote
It appears that there are no identifiable cold wallet reserves for QuadrigaCX.
It appears that QuadrigaCX was using deposits from their customers to pay other customers once they requested their withdrawal.
It does not appear that QuadrigaCX has lost access to their Bitcoin holdings.
It appears that QuadrigaCX was using deposits from their customers to pay other customers once they requested their withdrawal.
It does not appear that QuadrigaCX has lost access to their Bitcoin holdings.
It's still only speculation, but it does raise interesting points. The fact that there seems to be no linked cold storage wallet that has ever been active is shady, and increases the chances of them running a fractional reserve since essentially they'd be running a ponzi of taking customer deposits and repaying older withdrawals.
But still, it could just be that the cold wallet has been obscured from public eyes and that QuadrigaCX does have one. But, the chances of them operating on fractional reserve is higher.
When your bitcoin is with a third party, it is the same as if you deposited a sum of money with a bank - they are able to lend it out and do whatever. Except in the bitcoin world there are way less regulations, and exchanges can often become insolvent as a result.
I read this news today and was certainly a little surprised, but not much. Immediately it is obvious that he did not die. Everything was clearly planned long ago:
1) All coins are on cold media.
2) Only he had the password
3) Sudden death
Everything is obvious
1) All coins are on cold media.
2) Only he had the password
3) Sudden death
Everything is obvious
Not really. But the fractional banking accusations are true. Follow the money trail, we have a transparent ledger for a purpose.
Precise report at https://blog.zerononcense.com/2019/02/04/quadrigacx-chain-analysis-report-pt-1-bitcoin-wallets
Regarding his Death, this might be true or not, who knows. If there is no money left to make a run with he just really might be dead. Fractional banking even opens up a remote possibility of having gotten killed.
I read this news today and was certainly a little surprised, but not much. Immediately it is obvious that he did not die. Everything was clearly planned long ago:
1) All coins are on cold media.
2) Only he had the password
3) Sudden death
Everything is obvious
1) All coins are on cold media.
2) Only he had the password
3) Sudden death
Everything is obvious
Too many oddities and inconsistencies in this matter. The family does not have access to the key, dubious death. It is possible that he falsified his death to get money.
Sadly, this shows how much regulations are important, and this ecosystem desperately need it.
An exchange can't simple steal or lose 200 millions dollars because a CEO died. There must be security measures such as the ones you saw in your job. There will be some obligations regarding how privatekeys of someone else's money will be kept. It's somehow sad to think that those measures are necessary.
An exchange can't simple steal or lose 200 millions dollars because a CEO died. There must be security measures such as the ones you saw in your job. There will be some obligations regarding how privatekeys of someone else's money will be kept. It's somehow sad to think that those measures are necessary.
https://www.coindesk.com/canada-bitcoin-exchange-leader-market-turmoil
'Cotten, in turn, spoke to Quadriga’s security strengths, noting that the exchange uses multi-signature cold storage to secure bitcoin holdings. Fiat holdings, he continued, are held at unspecified Canadian financial institutions.
“Quadriga takes security seriously, and employs a number of policies and procedures to ensure that both client information and client funds remain completely safe,” he said.'
I'm sure his suggestion to stop multi sigging was thoroughly approved and applauded by his colleagues. He must have supplied Indian certificates stating that in no way whatsoever was he going to 'die' before he instigated it again.
An exchange can't simple steal or lose 200 millions dollars because a CEO died. There must be security measures such as the ones you saw in your job. There will be some obligations regarding how privatekeys of someone else's money will be kept. It's somehow sad to think that those measures are necessary.
With time and stricter regulations concerning exchanges it will be something of the past. Everything that happens right now will be used by regulators to understand how badly things can go wrong in the crypto world.We need these events (regardless of how bad they are) to happen in order to improve, and let's be honest, it's better that they happen today rather than somewhere in 2025 with very likely way higher amounts of user funds at stake.
I wish there was a way to make these mistakes without losing money, but that option isn't available. Only when money is lost, people, services and regulators are motivated enough to make sure it doesn't happen again.
I was actually looking forward to this news about the death of the founder who died and no one in the entire organisation have access to the crypto currencies in his custody. Things like this are what should not be heard in any sane industry and it would continue to ensure that regulators are harsh towards crypto start-ups. I have never seen a bank where one director will die and other directors can access the company's fund or an individual the fund goes to his next of kin after certain verification but unfortunately this is happening in crypto.
Its simply a case of failed system. Whether real or fractional peoples life saving are at stake.
Its simply a case of failed system. Whether real or fractional peoples life saving are at stake.
I don't get it, why does banks and exchanges and companies are saved by the government but not people. If a bank fails to do what it should and owes its customers a lot of money and needs to get bailed out of the situation government helps them out but when a person fails to pay their loan they take his stuff away. How does that makes sense. I know that wasn't the topic but I just hate the fact that Quadriga got saved by the Canadian government with the creditor protection thingy.
Aside from that I doubt he is not dead, he is probably dead, there are much better ways to steal peoples money without faking your death, otherwise someone could see you and notify people, who is going to believe someone who came up with 250 million dollar worth of coin without a big history, only people with that much money is the people who have been in the business world for a long time and unless he fakes his death and impersonate bill gates when he is revived as someone new people will ask where he found the money.
Aside from that I doubt he is not dead, he is probably dead, there are much better ways to steal peoples money without faking your death, otherwise someone could see you and notify people, who is going to believe someone who came up with 250 million dollar worth of coin without a big history, only people with that much money is the people who have been in the business world for a long time and unless he fakes his death and impersonate bill gates when he is revived as someone new people will ask where he found the money.
They will surely investigate if $250 million were involved. This should also be a wakeup call to other exchanges to have backup measure for instances like this. When I started working, we had a big safe in our offices and we had two people working on different shifts with keys to that safe.
Sadly, this shows how much regulations are important, and this ecosystem desperately need it.
An exchange can't simple steal or lose 200 millions dollars because a CEO died. There must be security measures such as the ones you saw in your job. There will be some obligations regarding how privatekeys of someone else's money will be kept. It's somehow sad to think that those measures are necessary.
They will surely investigate if $250 million were involved. This should also be a wakeup call to other exchanges to have backup measure for instances like this. When I started working, we had a big safe in our offices and we had two people working on different shifts with keys to that safe.
If something happened with the one person, the other person were simply called from the other shift to open the safe. We also had a third backup key that was stored off-site in a safety deposit box. 
This just looks like a unprofessional company, with no vision and disaster recover plans for emergency situations like this.
If something happened with the one person, the other person were simply called from the other shift to open the safe. We also had a third backup key that was stored off-site in a safety deposit box.
This just looks like a unprofessional company, with no vision and disaster recover plans for emergency situations like this.
Terribly bad for those who left their money on that exchange. Some investigation says that his death was faked and there's no valid proof that the CEO's death was for real, there's no even certificate to provide that his dead for real.
A new lesson to be told for most of the people who has been using exchanges as their safety vaults. Don't ever keep your bitcoin and other important stuffs on exchanges, as much as possible make sure you hold your funds by holding the private keys.
indeed it becomes very risky if we store it there, as if it is difficult to hold accountable after that. and of course the consumers who are harmed. therefore we have to be more careful to choose exchange and do not keep assets too long A new lesson to be told for most of the people who has been using exchanges as their safety vaults. Don't ever keep your bitcoin and other important stuffs on exchanges, as much as possible make sure you hold your funds by holding the private keys.
Terribly bad for those who left their money on that exchange. Some investigation says that his death was faked and there's no valid proof that the CEO's death was for real, there's no even certificate to provide that his dead for real.
A new lesson to be told for most of the people who has been using exchanges as their safety vaults. Don't ever keep your bitcoin and other important stuffs on exchanges, as much as possible make sure you hold your funds by holding the private keys.
A new lesson to be told for most of the people who has been using exchanges as their safety vaults. Don't ever keep your bitcoin and other important stuffs on exchanges, as much as possible make sure you hold your funds by holding the private keys.
I'd say that the a lot of the exchanges don't hold full reserves of what they get from deposits. The reason is simple, they are most likely able to spend this bitcoin elsewhere to finance the development of their own site or invest in things, while paying no interest. Of course, they aren't going to tell the public this, because otherwise people would be rushing to get their funds out.
think about how much money they make in fees, though. this isn't like stock trading where e-trade charges you a flat $7 commission per trade. crypto exchanges charge percentage commissions, which are immensely more profitable. high volume exchanges like bitfinex or coinbase are printing money super quickly.
intentionally making themselves insolvent is a really dangerous way to grow a business. they'd be better off selling equity for startup investment. any exchange that's done series A investment rounds or more is basically guaranteed not to be into this shady behavior.
Quote
https://bitcoinist.com/quadrigacx-death-funds-moved/
Quadriga CEO Death – Funds Moved From ‘Lost’ Cold Wallets
A company with legal problems; a mysterious death; missing customer funds. The QuadrigaCX story could have come straight from the pen of a hack Hollywood writer. Well now, the internet’s faithful crypto-investigators, claim to have found evidence of transactions initiated from the supposedly ‘lost’ cold wallets. The Litecoin wallets, at least.
Let’s Start With a Quick Recap
QuadrigaCX is Canada’s largest cryptocurrency exchange, although it has just filed for creditor protection, following months of transaction delays. Customers are naturally concerned about their funds, as all assets are temporarily frozen… supposedly.
-snip-
Unfortunately, explained Quadriga, and Cotten’s wife, Jennifer Robertson, the $250 million worth of cryptocurrency of customer funds is stored in cold wallets are not recoverable as only her dead husband knew the private keys.
Quadriga CEO Death – Funds Moved From ‘Lost’ Cold Wallets
A company with legal problems; a mysterious death; missing customer funds. The QuadrigaCX story could have come straight from the pen of a hack Hollywood writer. Well now, the internet’s faithful crypto-investigators, claim to have found evidence of transactions initiated from the supposedly ‘lost’ cold wallets. The Litecoin wallets, at least.
Let’s Start With a Quick Recap
QuadrigaCX is Canada’s largest cryptocurrency exchange, although it has just filed for creditor protection, following months of transaction delays. Customers are naturally concerned about their funds, as all assets are temporarily frozen… supposedly.
-snip-
Unfortunately, explained Quadriga, and Cotten’s wife, Jennifer Robertson, the $250 million worth of cryptocurrency of customer funds is stored in cold wallets are not recoverable as only her dead husband knew the private keys.
Is this for real? Did this guy just fake his death and stole the money?
Or did he spent the money long ago and now they were practicing fractional banking?
This is terrible news. This may be a good opportunity for everyone out there who trusts binance or bitfinex or tether or whatever to just move your funds to your own wallets!!!
Canada is a very serious country, with a very reliable financial system, and it happened there! With its largest exchange!! Imagine what can happen to a chinese exchange.
Regardless of whether the news of his death was fabricated or not - it does reveal a very important problem that lies with all centralised forms of exchanges, wallets, etc.
I'd say that the a lot of the exchanges don't hold full reserves of what they get from deposits. The reason is simple, they are most likely able to spend this bitcoin elsewhere to finance the development of their own site or invest in things, while paying no interest. Of course, they aren't going to tell the public this, because otherwise people would be rushing to get their funds out.
That's what you should expect to be the case when you do come across any stablecoins, any hosted wallet services, and any exchanges. Don't expect them to have every dollar on each deposit, because they probably will not. And also, even if they do, they have the capacity to suspend your account or freeze your funds at any given time as well, which is why in most cases, a trustless bitcoin wallet should be used for long term storage of funds, not centralised exchanges.
Surely the public wallet addresses at least must be known to the team, at least they can tell if it has been moved into a scam account. He probably converted it into monero before he died and then sent it to his family members
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