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Digital exchange loses $137 million as founder takes passwords to the grave

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iam4liberty:
Good reminder that no-one owns cryptocurrency.  One simply controls the ability to adjust a ledger.  Lose that control and all value disappears.

https://arstechnica.com/information-technology/2019/02/digital-exchange-loses-137-million-as-founder-takes-passwords-to-the-grave/?amp=1
Digital exchange loses $137 million as founder takes passwords to the grave

A cryptocurrency exchange in Canada has lost control of at least $137 million of its customers’ assets following the sudden death of its founder, who was the only person known to have access to the offline wallet that stored the digital coins. British Columbia-based QuadrigaCX is unable to access most or all of another $53 million because it’s tied up in disputes with third parties.

FreeLancer:
A young CEO with sole control of customer's coins "goes to India to open an orphanage and dies" with no business continuity plan?

Gox imploded 5 years ago, people.  It's not like we have to reinvent the wheel, here. 

He who controls the keys controls the coins.

FreeLancer:
Lots of people crying exit scam.....

Kraken's CEO questioning whether there's an actual body to support the death certificate and even offers to share thousands of their exchange's known QuadrigaCX addresses with the Royal Canadian Mounted Police.

https://twitter.com/jespow/status/1091863628066770944

Chain analysis is a bitch for thieves. 

FreeLancer:
Absolutely boggles my mind that a software engineer would be in this position.  Not only does he put everything into crypto, he puts it all on one exchange??!! 

California Engineer Loses $422,000 in Life Savings after Using QuadrigaCX; Is Help Coming?


--- Quote ---Tong Zou, 30, said in an interview to Bloomberg that he had opened a withdrawal request at QuadrigaCX in October 2018. According to his statements, he was planning to move to Canada at that time. Zou thought using a cryptocurrency exchange for remittance would save him money. So, he purchased bitcoins in the US and transferred them to his Canada-based Quadriga CX exchange account for a quick fiat withdrawal.
--- End quote ---


--- Quote ---“It’s all my savings, so I’m just living on what little I have left and trying to start over,” said Zou. “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.”
--- End quote ---




--- Quote from: FreeLancer on February 03, 2019, 06:27:22 PM ---Chain analysis is a bitch for thieves. 

--- End quote ---

A Crypto-Mystery: Is $136 Million Stuck or Missing?

Multiple independent analyses of the ETH, LTC, BTC blockchains cast doubt on the existence of cold storage wallets.  Until QuadrigaCX reveals the public addresses verifying appropriate balances and the absence of recent transactions following the CEO's "death" we have to assume it's all been stolen.

FreeLancer:
Reports today say the cold wallet addresses have been made public and they are missing 26,000 BTC.  One had been emptied 3 days before the CEO’s “death.”

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