QuadrigaCX Exchange, a Canadian cryptocurrency exchange’s decision to go offline without prior notice has led to the assumption that it is an exit scam. Reddit users based their assumption on the recent ordeals of the crypto exchange.
QuadrigaCX Exchange Troubles
QuadrigaCX Exchange has been in turbulent waters of operation in recent time due to its inaccessibility of $28 million of its funds since January 2018. This was caused by the decision of the Canadian Imperial Bank of Commerce to freeze several accounts belonging to the crypto exchange.
A release by the exchange during the period noted that the CIBC has been holding the exchange funds hostage since January 8, 2018, and the exchange is trying to find an ex post facto justification for wrongfully freezing and continuing to freeze these accounts in the first place. This, in turn, was blamed as the cause of the delay its users were experiencing using the exchange.
Of recent, on the 11th of January, the exchange had released positive news that it was making progress in seeing its fund returned by the Canadian Imperial Bank of Commerce after resolving a legal fight. However, its recent decision to go offline without prior notice to users has caused stirs. The exchange noted on its website that it went offline due to an unannounced system maintenance upgrade.
Reddit Users Responds
In response to the development, Reddit users have stated that it is an exit scam of the exchange. This has further been worsened by the inability of its users to make a withdrawal for some months now.
Some of the responses by users stated that “They ran into problems and decided it was easier just to rob everyone. They’re thinking ‘everyone is a thief anyway’ to justify it.” Also, another response asked if QuadrigaCX shouldn’t have informed their users before taking its site down.
Death Of Exchange Founder and Inaccessibility Of Cold Storage
Also, another postulation adduced for the woes of the exchange is the death of the founder, Gerry Cotten. He is the only one considered to have access to the exchange cold storage. Thus, the activity of the exchange is affected.
The Effect Of Crypto Winter Market On Exchanges
The crypto winter market has affected the growth of many crypto firms and has led to the downsizing of staffs and the closure of some. Recently, Liqui Exchange stops operation, and more exchanges have been stated to follow by some enthusiasts.