By now, some level of clarity should have been achieved on how to resolve the Quadriga CX debacle, right? In an opinion piece for CoinDesk today, one of Quadriga’s former attorneys clearly stated that most of the current news pieces on Quadriga have little basis in fact.
With that in mind, it is easy to wonder what the truth is about the alleged loss of millions of customer funds. Before we get anywhere close to that point, it is important to clear up certain matters about how the exchange was operating. According to Christine Duhaime, who is the lawyer in question, Quadriga was regulated in just about every possible way that a Canadian cryptocurrency exchange can be.
Furthermore, they even had what is called “cold storage insurance,” which appears to mean that funds that were kept with Quadriga were insured in the event of any loss that they would be deemed responsible for.
So, why then, was its’ CEO the only person to possess the private keys to what has been estimated to be about $190 million in crypto around the time of his death? Why wasn’t some other measure in place to prevent such a major loss from occurring? What is clear from Duhaime and CoinDesk is that a lot more stakeholders are likely still involved, beyond the Quadriga employees and their creditors. According to the article mentioned above, before the incident, Quadriga had already split into four entities, which means that it still has four groups of shareholders.
On top of this, Duhaime was quick to say that there are in fact a horde of Quadriga related records including some that likely prove the cold storage insurance. She also claims to have some level of access to Quadriga records, despite the fact that she was let go by the firm before the incident.
In the end, the key takeaway from anything Duhaime had to say is easy to grasp. If we, as a world, do not come together to find a better way to regulate cryptocurrency exchanges, then events like this will continue to happen.
By: BGN Editorial Staff