Kelowna cryptocurrency investors wary after being burned by QuadrigaCX

Kelowna cryptocurrency investors wary after being burned by QuadrigaCX

Sean Glendinning is one of many investors who got burned in the QuadrigaCX cryptocurrency meltdown.

Sean Glendinning is one of many investors who got burned in the QuadrigaCX cryptocurrency meltdown.

“I had been trading with them for about a year and a half, amongst other exchanges, but Quadriga was the easiest to use and easiest to transfer to Canadian funds,” said Glendinning, who’s an active member of a Kelowna-based cryptocurrency discussion forum.

He wouldn’t say how much he lost when the virtual operation tanked on Jan. 28 amid a flurry of controversy. An estimated 115,000 users of the QuadrigaCX exchange are owed $260 million in cash and digital assets.

He did say, however, he’s wary of future investments of a similar kind.

“I have still have money in the other exchanges, but it’s profit money,” he said. “I am not going to invest any of my own money. There’s still a chance long term that there will be value in crypto currency, I have no idea and I don’t think anyone’s does.”

Working in IT has made Glendinning alive to the potential of tech-based investments. He runs a number of different businesses and pointed out that with the way tech changes, it’s quick for something “to TedX, overnight.”

“I invested in Netflix and it’s worth three times what it was when I started,” he said. “Things can go the other way, like BlackBerry, but they can (explode) in tech and they will happen more frequently as technology changes.”

Quadriga’s turn of fortune, however, took Glendinning by surprise.

“This is such a speculative currency,” he said. “It’s not too much different than investing in a startup company. You put in $10,000 in a start up and it could disappear tomorrow, but a lot of other exchanges didn’t seem as well put together. Canadian banking rules are strict, and most of these exchanges won’t work with the banks, so I am surprised that Quadriga’s went the way it did.”

READ ALSO: KELOWNA CONNECTION TO DEAD CEO OF CRYPTOCURRENCY EXCHANGE

He pointed out that the value of bitcoin and other currencies have decreased in value since Quadriga’s issues so more people are likely to be wary going forward.

The courts certainly are treating it carefully.

A Nova Scotia judge last week issued an order for the eventual disbursement of more than $30 million that belonged to the insolvent QuadrigaCX trading platform.

Lawyers for the Bank of Montreal and the court-appointed monitor overseeing the case, Ernst and Young, said the banks are uncomfortable handling money from the cryptocurrency world, saying the uncertain origin of the funds raises concerns about possible money laundering.

At the conclusion of the hearing, Justice Michael Wood of the Nova Scotia Supreme Court issued an order that will eventually see the QuadrigaCX money deposited in a Royal Bank account, which Ernst and Young will use to pay for the ongoing court proceedings.

As the financial issues get worked out, Glendinning will be among those who play close attention to other narratives surrounding Quadriga’s fortunes.

CEO and sole director, Gerald Cotten of Halifax, died suddenly on Dec. 9 while travelling in India, leaving his company without access to about $190 million in Bitcoins and other cryptocurrency.

According to the CEO’s widow, Jennifer Robertson, Cotten was the only member of the QuadrigaCX team who knew the encrypted pass codes needed to gain access to the company’s cryptocurrency reserves.

“I question whether this guy is even dead,” said Glendinning. “There are a lot of conspiracy theories out there, but for this guy to die with his wife next to him with no backup plan, it’s strange.”

To report a typo, email:
newstips@kelownacapnews.com
.


@KelownaNewsKat
kmichaels@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

Just Posted

(Facebook/Kelowna Cabs)
Kelowna Cabs reaches tentative agreement with dispatchers union

The tentative agreement could help end the dispute between the taxi company and the dispatchers

sdaf
Lake Country home destroyed in large blaze, 11 dogs rescued

Fire crews are responding to 10839 Hallam Drive

Festivals Kelowna president Richard Groves and executive director Renata Mills wrap themselves in the flag during the announcement of preparations for the 2018 Canada Day festival. (Alistair Waters/Capital News)
Festivals Kelowna cancels Canada Day celebrations for second year in a row

The group cited logistic issues in their announcement

Central Okanagan Public Schools is assisting with the distribution of a donation of $500 to every Grade 12 graduating student in the school district. (File photo)
Central Okanagan Grade 12 grads get $500 surprise

Anonymous donor gifts $500 to every Grade 12 student

A vehicle was fully engulfed in flames before around 11:10 p.m. Wednesday, June 16, 2021. (Kerry Hutter - contributed)
UPDATE: Kelowna man cuffed after carjacking in Vernon

Crime spree: Man robs couple at Coldstream lookout at gunpoint, sets a vehicle ablaze

Bear wanders Kelowna on June 15. (Michelle Wallace/Facebook)
Bear climbs fence, uses crosswalk in Kelowna

The bear was spotted on Baron Road Wednesday evening

Jeanette Megens
KCR: Volunteering is sharing your story

Kelowna Community Resources shares stories of its volunteers in a weekly column

This photo of the small wildfire burning above Naramata was taken at 8 p.m. on Thursday, June 17, 2021 (Monique Tamminga Western News)
BC Wildfire on scene of small wildfire above Naramata

Smoke has been showing since earlier in the day

Students in the Grade 10 entrepreneurship program at Summerland Unisus School have completed a cookbook with international recipes. (Contributed)
Summerland students create virtual international cookbook

Entrepreneurship program at Summerland Unisus School uses virtual cookbook as fundraiser

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Hundreds of people, young and old, joined the three-day Walking Our Spirits Home procession, honouring residential school survivors, those who never made it home and all those affected by the institutions. Here people walk the third portion on June 13. (Martha Wickett - Salmon Arm Observer)
Walking Our Spirits Home from Kamloops provides path to healing

First Nations in and beyond Secwépemc territory join in to honour residential school survivors

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

201 First Street West 1980s. Prior revitalization. (Photo from Revelstoke Museum and Archives)
Man who redesigned downtown Revelstoke honoured with lifetime achievement award

Robert Inwood has worked on historical projects across the province

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

Most Read