Canadian Exchange Loses Access to $190 Million in Funds as QuadrigaCX Users Look for Answers
Bitcoin has operated within a 3.5% price range over the course of the past 6 days. The low volatility at this point has allowed us to maintain the same analysis on the state of crypto for about a week.
The support holding from $3330-3400 still remains a crucial level. A break would could result in revisiting 2018-2019 lows.
$3500 has turned into local resistance. A significant close, above $3500, (4hr. Or higher time frame) will have us reevaluate our 75% fiat 25% crypto portfolio allocation.
In other news, QuadrigaCX, a Canadian digital asset exchange, reportedly owes its customers roughly 190 million USD and has lost access to a majority of these funds!
QuadrigaCX stored a vast amount of the cryptocurrency on their exchange in cold wallets offline. Unfortunately, the only person with access to the offline, secured funds, is the late CEO for Quadriga, Gerald Cotten who passed away in December of 2018.
It has become apparent to the team that after the CEO’s death, they have now lost the ability to access the locked funds. Cotten took sole responsibility for securing the crypto funds and now that he has passed, any attempt by third parties to extract the data and unlock his personal computer have been unsuccessful.
Our team feels awful for all parties involved as it does not seem that foul play has occurred, but rather a very misfortunate circumstance.
That being said, we have to question the protocol in place, for QuadrigaCX, as now they have essentially locked away a significant amount of their clients’ money due to faulty security measures.
This is exactly why we have always preached holding one’s own private keys, personally, and giving trusted family members or loved ones the back up keys needed to access funds in the event of illness or death. Just like in traditional wealth storage, even respected institutions can still ultimately mishandle/mismanage one’s capital which can result in losses like the QuadrigaCX situation.
One of the most important aspects of this space is the ability to personally protect one’s wealth to the highest capacity, and always remain in control of your funds. Trading is a pivotal aspect of the cryptocurrency space, but using exchanges as long-term wallets is not a practice we use or endorse.
We will keep you posted on future price action as it unfolds.