Kelowna cryptocurrency investors wary after being burned by QuadrigaCX

Sean Glendinning is one of many investors who got burned in the QuadrigaCX cryptocurrency meltdown.

Sean Glendinning is one of many investors who got burned in the QuadrigaCX cryptocurrency meltdown.

“I had been trading with them for about a year and a half, amongst other exchanges, but Quadriga was the easiest to use and easiest to transfer to Canadian funds,” said Glendinning, who’s an active member of a Kelowna-based cryptocurrency discussion forum.

He wouldn’t say how much he lost when the virtual operation tanked on Jan. 28 amid a flurry of controversy. An estimated 115,000 users of the QuadrigaCX exchange are owed $260 million in cash and digital assets.

He did say, however, he’s wary of future investments of a similar kind.

“I have still have money in the other exchanges, but it’s profit money,” he said. “I am not going to invest any of my own money. There’s still a chance long term that there will be value in crypto currency, I have no idea and I don’t think anyone’s does.”

Working in IT has made Glendinning alive to the potential of tech-based investments. He runs a number of different businesses and pointed out that with the way tech changes, it’s quick for something “to TedX, overnight.”

“I invested in Netflix and it’s worth three times what it was when I started,” he said. “Things can go the other way, like BlackBerry, but they can (explode) in tech and they will happen more frequently as technology changes.”

Quadriga’s turn of fortune, however, took Glendinning by surprise.

“This is such a speculative currency,” he said. “It’s not too much different than investing in a startup company. You put in $10,000 in a start up and it could disappear tomorrow, but a lot of other exchanges didn’t seem as well put together. Canadian banking rules are strict, and most of these exchanges won’t work with the banks, so I am surprised that Quadriga’s went the way it did.”

READ ALSO: KELOWNA CONNECTION TO DEAD CEO OF CRYPTOCURRENCY EXCHANGE

He pointed out that the value of bitcoin and other currencies have decreased in value since Quadriga’s issues so more people are likely to be wary going forward.

The courts certainly are treating it carefully.

A Nova Scotia judge last week issued an order for the eventual disbursement of more than $30 million that belonged to the insolvent QuadrigaCX trading platform.

Lawyers for the Bank of Montreal and the court-appointed monitor overseeing the case, Ernst and Young, said the banks are uncomfortable handling money from the cryptocurrency world, saying the uncertain origin of the funds raises concerns about possible money laundering.

At the conclusion of the hearing, Justice Michael Wood of the Nova Scotia Supreme Court issued an order that will eventually see the QuadrigaCX money deposited in a Royal Bank account, which Ernst and Young will use to pay for the ongoing court proceedings.

As the financial issues get worked out, Glendinning will be among those who play close attention to other narratives surrounding Quadriga’s fortunes.

CEO and sole director, Gerald Cotten of Halifax, died suddenly on Dec. 9 while travelling in India, leaving his company without access to about $190 million in Bitcoins and other cryptocurrency.

According to the CEO’s widow, Jennifer Robertson, Cotten was the only member of the QuadrigaCX team who knew the encrypted pass codes needed to gain access to the company’s cryptocurrency reserves.

“I question whether this guy is even dead,” said Glendinning. “There are a lot of conspiracy theories out there, but for this guy to die with his wife next to him with no backup plan, it’s strange.”

To report a typo, email:
newstips@kelownacapnews.com
.


@KelownaNewsKat
kmichaels@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

Just Posted

Women, girls in Silver Creek demonstrate a creative demand for the vote

One of the women, described as a ‘raging suffragette,’ is the aunt of resident Phil Wright

Okanagan man killed in head-on collision on Highway 1 near Salmon Arm

Police say 21-year-old died at scene after pickup truck collided with transport trailer

After 30 years, Shuswap Lady Striders run stronger than ever

Women’s outdoor fitness, social group celebrates anniversary

Sweet Caroline: Neil Diamond tribute to bring favourites to Shuswap

Jason Scott to put on his Diamond Forever show at the Salmon Arm Legion Oct. 25

VIDEO: #MeToo leader launches new hashtag to mobilize U.S. voters

Tarana Burke hopes to prompt moderators to ask about sexual violence at next debate

Potent power play paces Canucks to 5-1 win over Detroit

Miller nets a pair as Vancouver wins third straight

Okanagan ski hills highlighted on website’s ‘most affordable’ list

HomeToGo looks at rentals, lift passes, accommodations and food to compile list of Top 50

UPDATE: British couple vacationing in Vancouver detained in U.S. after crossing border

CBP claims individuals were denied travel authorization, crossing was deliberate

After losing two baby boys, B.C. parents hope to cut through the taboo of infant death

Oct. 15 is Pregnancy and Infant Loss Awareness Day in B.C.

Chase Heat pick up win versus Spokane Braves in weekend road series

Shuswap team unable to down league-leading Beaver Valley Nitehawks

Cheating husband sues mistress for gifted ring after wife learns about affair

The husband gave his mistress $1,000 to buy herself a ring in December 2017

Most Read