What Happened to QuadrigaCX? We Explain Here

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With around C$28 million in assets and C$215.7 million in liabilities, QuadrigaCX filed for bankruptcy in 2019 after ceasing operations of the exchange. Under the Companies’ Creditors Arrangement Act, Quadriga was given temporary legal protection from its creditors, and EY was appointed as an impartial monitor.

In the fast-paced world of cryptocurrency, QuadrigaCX’s demise stands out as one of the most baffling and consequential events in recent history. Once a prominent player in the crypto exchange landscape, QuadrigaCX’s downfall sent shockwaves through the community, leaving investors and enthusiasts with unanswered questions. In this article, we delve into the rise and fall of QuadrigaCX, exploring the circumstances surrounding its collapse and the subsequent investigations that ensued.

Gerald Cotten, who was born on May 11th, 1988, grew up in Belleville, Ontario, and then moved to Toronto to enrol at the Schulich School of Business at York University. In 2010, he received his bachelor of business administration from York. In November 2013, he and Michael Patryn created Quadriga in Vancouver, British Columbia, where he first learnt about Bitcoin.

Working with Patryn, the company made an effort to raise capital and list on the CSE. Despite raising C$850k, the company decided against going public on the exchange in 2016. Quadriga had four employees and offices in Toronto and Vancouver in 2015, but by June of that year, they were out of cash.

Solid Accounting Systems

In 2017, there was a speculative frenzy that saw the price of Bitcoin soar from roughly $1,000 to almost $20,000. Due to the exchange’s dependence on outside payment processors and the absence of a solid accounting system, the significant growth in volume increased commissions but also resulted in cash flow issues. In June 2017, Quadriga said that a smart contract error has cost them Ethereum valued US$14 million.

Customers of the exchange noticed delays when seeking to withdraw dollars throughout 2018, as the price of Bitcoin fell. The Canadian Imperial Bank of Commerce froze C$28 million held by Costodian, a Quadriga payment processor, in January 2018. According to CIBC, they were unable to reach Cotten or Quadriga and could not determine who owned the money. Costodian and Quadriga were unable to get access to the money.

The U.S. Securities and Exchange Commission is suing Michael Gastauer, the CEO of WB21, for his alleged involvement in a US$165 million fraud.

Decentralised Public Database

Gerald Cotten, the CEO of Quadriga, passed away from Crohn’s disease while volunteering at an orphanage in India, the company reported on January 14, 2019. According to blockchain researchers, there is no proof of Quadriga’s cold wallets on the blockchain, which is a decentralised public database for cryptocurrencies.

The Ontario Securities Commission declared Quadriga to be a Ponzi scheme and a fraud in June 2020. Gerald Cotten defrauded Quadriga by establishing accounts using aliases, crediting himself with phoney currency balances, and trading crypto assets with unwitting consumers.

On February 6, 2019, EY revealed that US$354,300 worth of bitcoin were “accidentally” deposited to a cold wallet that was inaccessible.

Conclusion

The QuadrigaCX saga remains a cautionary tale of the potential risks associated with centralized cryptocurrency exchanges. The exchange’s collapse revealed the need for improved regulatory frameworks, security practices, and transparency within the industry. As the crypto landscape continues to evolve, the lessons learned from QuadrigaCX’s downfall serve as a reminder that vigilance and due diligence are crucial in safeguarding the future of digital assets.

Shaquille O’Neal’s Business Portfolio Might Surprise You

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American former professional basketball player Shaquille Rashaun O’Neal. The sportsman who signed with the Orlando Magic in 1992 at the age of 21 and spent his first million dollars in a single day is no longer around.

Shaq has a net worth of $400 million as a result of his 19 seasons as a professional athlete and his investments in various fast-food and restaurant chains, among other businesses. Only Lebron James, Michael Jordan, Magic Johnson, Junior Bridgeman, and Junior Bridgeman have a net worth of $1 billion, making him one of the NBA’s top five richest players.

The NBA player has acquired ownership of 155 Five Guys restaurants since announcing his retirement in 2011, accounting for 10% of the company’s total. Later, he would sell the franchises. O’Neal also owns nine Papa John’s restaurants and 17 Auntie Anne’s Pretzels locations.

He has his own fast-food franchise in addition to investing in 150 car washes, 40 24-hour gyms, and a movie theatre in his hometown of Newark. He started the Big Chicken sandwich brand in 2018. The company has more than ten locations in Las Vegas and wants to branch out to other American cities like Austin and Phoenix. He considers himself the “Chief Fun Officer” of the Carnival cruise line, whose menus now include the franchise’s chicken sandwiches.

His love of food even inspired him to write a cookbook, which he released in the first week of April. Shaq’s Family Style, whose cover depicts burgers, brownies, and fried chicken, promises “championship recipes for feeding family and friends.”

Humbling Experiences

He acknowledged, though, that he hasn’t always succeeded when he went with his gut. One of O’Neal’s biggest regrets, who is also a DJ, actor, and talk show host, was not doing business with the CEO of Starbucks. Howard Schultz wants to do business with you, and I’m like coffee, my agent phones and speaks. Because I never saw a Black person drink coffee growing up in my family, he said American journalist Graham Bensinger.

So, he added, “I turned the great Howard Schutz around and said, ‘Black folks don’t drink coffee, sir. It won’t work, in my opinion.” You ought to have seen his face, too.

Conclusion: Shaq’s Enduring Legacy

In the realm of celebrity entrepreneurship, Shaquille O’Neal’s business portfolio is a testament to his multifaceted talents and entrepreneurial spirit. From his unexpected foray into the food industry to his tech-savvy investments and commitment to education, Shaq has proven time and again that he’s much more than a basketball icon. His diverse ventures not only reflect his wide-ranging interests but also his ability to identify opportunities, adapt to changing landscapes, and leave an indelible mark on every industry he enters.

As Shaq continues to surprise and inspire, his journey from the court to the boardroom serves as a lesson in embracing new challenges and building a legacy that extends beyond the confines of his athletic achievements. With his larger-than-life personality and unwavering determination, Shaquille O’Neal has truly transformed his business ventures into an extension of his legendary presence.