A Canadian cryptocurrency trader who previously traded on the troubled cryptocurrency exchange, QuadrigaCX has revealed he lost $75,000 after the trading platform began experiencing numerous problems.
As crypto enthusiasts know, QuadrigaCX’s founder and CEO, Gerald Cotten, reportedly passed away on a trip to India and what appears to have made matters worse is he was initially thought to have sole access to the crypto trading platform's cold wallets, which held over $145 million worth of client funds.
Cold Storage Wallets Reportedly Empty Since April 2018
For several weeks, there were reports of many attempts being made to recover the large amount of funds. However, QuadrigaCX’s auditor reported earlier this month most of the exchange’s cold storage wallets were reportedly empty since April 2018.
In a recent report published by MarketWatch, Bill Tsao, a Toronto, Canada-based digital asset trader, revealed he lost $75,000 after he made the mistake of conducting a “mis-timed” transaction. The trader also claims he entered a bid price that was “probably too good to be true.” He remarked:
I needed the cash so I just looked for the best price and thought this is the best place to sell. It was just over one hundred thousand [Canadian] dollars (appr. $74,800 USD) to pay down some mortgage and cover some other personal items.
Site Goes Down Right After Trader Conducts Large Transaction
Tsao noted he executed his sale order on January 28, 2019, which was right before the QuadrigaCX website went down - and remained offline thereafter. As detailed by MarketWatch, Tsao reportedly sold his bitcoins (BTC) just before 2 AM Eastern Standard Time (EST) on that day. This, according to data from block explorer site, Blockchain.com.
Although QuadrigaCX’s management posted an update claiming the exchange was performing “routine maintenance,” the trading platform never became operational again. Instead, reports detailing the untimely death of Gerald Cotton, the founder of QuadrigaCX, started surfacing.
Regretting Trading On QuadrigaCX
While Tsao admits he lost millions of dollars trading bitcoin, the trader says he regrets conducting that one particular bitcoin transaction on QuadrigaCX the most. He noted:
Right now, I can’t do anything until the investigation is over. I have sent emails, filled out tickets but I have got nothing back.
Going on to mention that there was an obvious red flag as bitcoin had reportedly been trading at a $600 premium on QuadrigaCX (at the time he conducted his transaction), he confessed:
All I wanted was the best price. I felt so stupid not really looking into the site further before I [did] that.