QuadrigaCX Victims Could Become a Likely Target for Cryptocurrency Scammers


    It has been a while since anyone last heard from the QuadrigaCX exchange. Canadian users were disappointed to find out the platform was shut down, although most users are eligible for filing a claim to get their money back. As this lawsuit now draws near, it is likely to assume criminals will try to capitalize on the victims of this trading platform for various purposes. 

    The QuadrigaCX Fall From Grace

    It has not been a great year for cryptocurrency users in Canada, especially if they used to rely on the services provided by QuadrigaCX. While this company seemed perfectly legitimate at one point, a lot of things have gone awry in recent times, triggering massive losses for exchange users. At its worst, the company owed roughly $160m in assets to customers, yet they only had $21m in reserves, which is far from a workable scenario. 

    Things quickly fell apart for the company once founder and CEO Gerald Cotten died recently. At that point, it quickly became evident that no one would be able to access any of the money stored in cold storage or offline wallets. While it remains unclear why things were set up this way, Cotten was the only one who had access to the funds at all times. Even so, it seems none of the money owed was store din addresses publicly shared by the company, which is a very worrisome aspect in its own regard. 

    Forced Shutdown and Creditors

    Once the situation became clear to everyone, it took a  few months until things could finally move in a more decisive direction. The Supreme Court of Nova Scotia forced the company to terminate its services and file for bankruptcy accordingly. Creditors were appointed to ensure everything can be handled properly, although there is still a lot of information waiting to be collected ever since. As is usually the case when incidents like these occur, victims will need to be patient first and foremost. 

    Affected users of the now-defunct QuadrigaCX exchange should be eligible to file a claim in the weeks ahead. That in itself confirms the investigation is still ongoing, albeit it remains unclear how long it will take to gather all of the details and attempt to recover funds accordingly. If similar incidents are any indication, it will take another few years until users would see a dime. In this particular case, most people are interested in figuring out where the money ended up. 

    Scammers are Lurking

    It should not come as too big of a surprise to learn criminals and scammers are keeping close tabs on the QuadrigaCX story. So much even that some users have already received emails claiming to be related to the lawsuit and claim processes. While details are a bit scarce in this regard, it is likely to assume a tactic similar tot hat used for Cryptopia victims will be used. That means emails might originate from a seemingly legitimate email address and come with a link to download a file on an external host.

    Anyone who receives such an email should refrain from clicking the download link altogether. This is primarily because the document in question is either laden with malware or the criminals are trying to obtain specific information from QuadrigaCX victims. One can only hope such attacks should be rather limited in number, or users are smart enough to ignore these fake claims altogether.  For the time being, it remains to be seen what the future will hold in this regard.

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