Canadian crypto exchange QuadrigaCX goes offline, Reddit screams 'Exit Scam'

29 Jan, 2019 | Updated: 06 Feb, 2019
by Joeri Cant
Canadian crypto exchange QuadrigaCX goes offline, Reddit screams 'Exit Scam'

The Canadian cryptocurrency exchange QuadrigaCX went offline due to an unannounced system maintenance upgrade, according to a statement on its website, however Reddit users are saying it is just another 'Exit Scam'.

Chepicap previously reported that QuadrigaCX, Canada’s largest cryptocurrency exchange, was unable to access $28 million of its funds since January 2018, when the Canadian Imperial Bank of Commerce decided to freeze several accounts belonging to Quadriga’s payment processor.

Read more: 5 conclusions of the QuadrigaCX hearing

Quadriga stated at the time that the CIBC 'has been holding the respondents’ funds hostage since January 8, 2018 while QuadrigaCX is trying to find an ex post facto justification for wrongfully freezing and continuing to freeze the accounts in the first place', further blaming the 'Canadian banking cartel' for the delays some customers were experiencing.

Read more: Vancouver crypto exchange & CIBC clash in court over frozen crypto accounts

On January 11th, QuadrigaCX tweeted that they could share the positive news that it was making progress toward funds being released back to QuadrigaCX, after resolving a legal fight with the Canadian Imperial Bank of Commerce.

However, Quadriga users, some of whom have been unable to withdraw their funds for months, are now concerned that the unannounced downtime for the QuadrigaCX website, is a sign that something might be very wrong with the crypto exchange.

One Reddit user asked if QuadrigaCX shouldn't have let their customer know before taking its site down? Another Reddit user speculated as to whether the exchange had gone bankrupt due to an inability to find a suitable bank to host an account and facilitate transfers?



Others are calling it an Exit Scam 100%.



Recent news on the apparent death of the exchange’s founder, Gerry Cotten is making this entire situation even more complicated. Reddit users are asking for proof of death, while one user claimed that the exchange, most likely, couldn't access assets in cold storage, as the keys were only known to Cotten.

At this point it is unclear when or if the exchange would go back online, as no official statements by QuadrigaCX have been made.

Do you think this is an Exit Scam? Let us know in the poll below.

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