One QuadrigaCX User Lost Over $420,000 as Community Continues to Suffer in Pending Litigation
The customers of QuadrigaCX are (rightfully) angry and frustrated over the cards that are dealt with them. One of the most recently publicized cases of someone’s investment going wrong is Tong Zou, who is just 30 years old.
Based on his own statements, Zou’s goal was to be able to move to Canada, believing that the use of cryptocurrency was a solution for the expenses. After purchasing Bitcoins in the United States and sending them to the Canada-based exchange account with QuadrigaCX, his dreams quickly disappeared.
Zou stated, “I wasn’t using it for trading – I just wanted to move my money over to my Canadian bank account.”
However, even upon attempting to withdraw funding, Zou was among the 115,000 people impacted by the dead end left for them. The QuadrigaCX platform declared that it was insolvent after the death of founder Gerald Cotten in December. At this point, the only person with access to the cold wallets was Cotten, and the court has allowed the platform creditor protection for 30 days.
The wait, unfortunately, has been torture for clients like Zou and others. In a statement to Bloomberg, he revealed that he was already living in Vancouver, but the actions of QuadrigaCX have locked up his entire life savings and has been unable to purchase something as minimal as an apartment. His plan was to allow his savings account to support him during the weeks when he would await his first paycheck, but that plan has since come to a halt.
He explained, “It’s all my savings, so I’m just living on what little I have left and trying to start over. It pretty much took everything away from me […] I was going to use that money for a deposit on an apartment, but now I can’t do that anymore. And now I’m currently searching for a job, so it’s kind of a bad time for me.”
Users of QuadrigaCX have been staying connected with a Telegram messaging group, turning to the help of Bennett Jones LLP and McInnes Cooper as their representatives in court. The motions from these representatives will not be heard until February 14th at 0930 local times.
Presently, one of the points of conversation has been whether the regulators in Canada are actually liable for the investigation as well. The British Columbia Securities Commission (BCSC) said that they do not plan to initiate an inquiry on Friday. However, by the next day, the Ontario Securities Commission (OSC) expressed that they are “looking into the matter,” but did not provide clarification if they were planning to participate in the $190 million scandal investigation.