Crypto Trader From Toronto Had The Worst Timing, Using QuadrigaCX Hours Before Withdrawals Were Halted
Toronto Bitcoin Trader Couldn’t Have Worst Timing, Investing In QuadrigaCX Hours Before Withdrawals Were Halted
There are plenty of bad decisions that investors can make, whether in the traditional finance world or the crypto industry. It is easy to look out for the signs of a scam, or even to protect a wallet from being hacked. However, there are some investments that are just about timing, which is what Bill Tsao came up against an investment he made on January 28th.
His investment involved $75,000 in BTC, which could be a major investment in any exchange. Unfortunately, the exchange that Tsao chose to put his faith in was QuadrigaCX. Though there are some people that could have suggested researching what the problems surrounding the exchange were at the time, none of those concerns became issues for Tsao until a few hours after the investment. At that point, the exchange shut down withdrawals, and everything came to a halt.
Speaking with MarketWatch, Tsao expressed that his goal was to find a good price so he could sell relatively quickly. He wanted to pay down some of the balance of his mortgage, along with a few other personal expenses, but clearly, that did not go according to plan. He sold about 20 bitcoins, and then Quadriga told everyone that withdrawals were down for a “software upgrade.” Anyone who has heard about Quadriga in the news knows exactly how this played out since, as the project is about to spend a third month in court while they attempt to retrieve the funds for the creditors that are owed their investments.
Like any investor, Tsao he did not think that there was a reason to be concerned since he had performed transactions on the platform before. However, by morning, the beginning of an ongoing drama had begun. The investor filed a police report, but the only thing he can do right now is to wait. Reddit has been a major source of information, but even that content is limited.
Tsao has repeatedly said that he regrets his decision, which he has felt since the next morning. The only way to get ahold of the company has been grouping himself with the other creditors. An interesting factor here is that he completely overlooked that Bitcoin was trading at close to a premium of $600. This should have been a sign that there is not the liquidity on the exchange but looking at it in hindsight is just more pain for this already infuriating circumstance.
If nothing else, investors should take away that Tsao is far from a newbie, and this problem could happen to anyone that is overzealous about how much they think they know about the industry. Along with the QuadrigaCX loss, he has also lost “millions” from the downturn of the market.
At this point, QuadrigaCX is protected in their case from creditors, and they have been appointed Ernst & Young as the monitor of the case. The late CEO’s widow, Jennifer Robertson, recently upset the victims in this exchange’s demise when he said that she wanted the $225,000 back that she used to get the creditor protection for QuadrigaCX.