QuadrigaCX Review: What Happened and Why It Still Matters
When you think of QuadrigaCX, a now-defunct Canadian cryptocurrency exchange that once served over 100,000 users. Also known as Quadriga, it was once one of Canada’s largest crypto platforms—until its founder vanished and the entire operation collapsed overnight. This wasn’t just a technical failure. It was a warning shot fired across the industry about what happens when trust isn’t backed by transparency.
QuadrigaCX’s downfall started with Gerald Cotten, the founder and CEO who held sole control over the exchange’s cold wallets.Cotten died in India in 2018, but his death wasn’t reported until months later. By then, customers couldn’t access their funds. The exchange claimed $190 million in crypto was locked in offline wallets—wallets only Cotten could access. No one else had the passwords. No backups. No recovery plan. This wasn’t a hack. It was negligence wrapped in secrecy. The story exposed a dangerous truth: many crypto exchanges still operate like private banks with no oversight. Unlike banks, they don’t carry insurance. They don’t have audits. And when things go wrong, users have zero legal recourse.
The aftermath of QuadrigaCX changed how regulators looked at crypto. Canada’s securities commission launched one of the first major investigations into a crypto exchange’s internal controls. Courts eventually ordered the liquidation of remaining assets, but most users got back less than 20% of what they lost. Meanwhile, exchanges like Bithumb, South Korea’s top exchange with strict internal controls and regulatory compliance.Bithumb exchange and Kraken, a U.S.-based platform with full audits and cold storage transparency.Kraken crypto exchange began publishing proof-of-reserves to rebuild trust. QuadrigaCX didn’t just lose money—it lost credibility. And that’s the real cost.
Today, if you’re considering any exchange, ask: Who controls the keys? Is there more than one person with access? Are there public audits? Is there insurance? QuadrigaCX failed because it answered none of these. The posts below dig into other exchange failures, scams like VB Crypto, and how to spot red flags before you deposit a single dollar. You won’t find hype here—just facts, patterns, and lessons learned the hard way.
QuadrigaCX Crypto Exchange Review: The Rise and Fall of Canada’s Largest Cryptocurrency Platform
QuadrigaCX was Canada's largest crypto exchange until it collapsed in 2019, leaving users with $215 million in losses. This review reveals how fraud, not a hack, caused the disaster - and how to avoid the same fate today.