Bitcoin is a virtual currency that was worth less than 1 cent in 2009. However, in the following ten years, Bitcoin's price skyrocketed, rising like a mad dog and leaving everyone in shock, peaking at nearly $69,000. Naturally, this attracted a large number of investors.
His name is Zou Tong, a Chinese-Canadian who also wanted to make a fortune by trading cryptocurrencies, so he borrowed $85,000 and converted it all into Bitcoin. Whether in stock trading or cryptocurrency trading, it seems that when you don't buy, prices rise nicely, but as soon as you invest, they drop. Zhou Tong encountered this situation, and helplessly, Zou Tong had to sell his house to pay off debts, ultimately holding all his assets of $400,000, preparing to return to Canada. However, converting $400,000 into Canadian dollars through the bank would incur a 2% fee, so Zou Tong chose another option!
QuadrigaCX is Canada's largest cryptocurrency trading platform, and one of its significant advantages is that it provides customers with fee subsidies. Therefore, Zou Tong converted all of his $400,000 into Bitcoin through QuadrigaCX, and this step went particularly smoothly. However, immediately selling it to convert to Canadian dollars for withdrawal did not go smoothly; the money could not be withdrawn, and the page only displayed that his request had been processed. This processing took over two months, and in the anxious wait, time reached January 14, 2019, when a piece of news shattered Zou Tong's hopes like a bolt from the blue!
In December 2018, Gerald Cotten, the founder and CEO of QuadrigaCX, suddenly passed away while on his honeymoon in India. He was the only person who knew the company's cold wallet keys. After Cotten's death, the company was unable to process customer withdrawals, and Ernst & Young confirmed that the addresses where the company had stored Bitcoin were empty. Zou Tong became one of the 115,000 customers who suffered financial losses, with his over $400,000 also disappearing.
According to investigations, the company founded by Cotten had numerous issues, such as chaotic management and unclear financial accounts. Cotten's death was also surrounded by many suspicions, leading to various speculations, such as his wife poisoning him for the inheritance and absconding with the money, Cotten faking his death to run away with funds, and collusion between the couple. However, the police investigation results have not been released, leaving investors like Zou Tong with little hope of recovering their money.
The myth of Bitcoin skyrocketing from 1 cent in 2009 to $69,000 attracted countless people to take risks, but few recognized the regulatory loopholes and extreme risks of virtual currency trading platforms. Zou Tong's experience is not an isolated case; when the gamble of 'saving on fees' collided with the deadly flaw of 'key control by one person,' even the highest expectations for returns turned into bubbles.
Investing has countless rules, but safety comes first! Virtual currency trading is unregulated, and platform risks are extremely high; don't let greed and luck devour your hard-earned money. Follow me @CHAIN news to see through more financial traps and protect your wallet's safety!
