Which would be shocking for a cryptocurrency platform!
Because crypto is so well known for the honesty of its actors.
Good news for $COIN?
Looks like they don't even maintain custody of user funds at all.
All this is very clear from the existing docs on their site.
Oh that's interesting. Then that's a very different proposition.
> Our fee structure is different to that of a brokerage or exchange. As a retailer, our expenses are generally higher than a sole crypto trader’s.
So apparently not an "exchange platform", but rather a "retailer".
Presumably they're trying to cater to less-technical folks who'd pay extra for the convenience/ease.
> What you see is what you get! Our advertised rates include ALL fees, and the price agreed upon at the time of purchase is fixed regardless of what happens in the market. Our fees appear slightly higher than exchanges because we have done all the hard work for you – with education and support to help get you started, and no need for you to deal with multiple exchanges or currency conversions.
OK, well that does explain things more neatly.
That's like someone with a 500k to 700k portfolio doing 1M worth of transactions in 5 years (should be reasonable?) trying to be market maker for Tesla.
[1] https://www.blockchain.com/charts/estimated-transaction-volu...
You and I have a different idea of what " pretty well" means, unless I missed something.
"We don’t hold customer funds – at the time of the trade, we send the cryptocurrency directly to your wallet"
I guess shows this isn't another Quadriga event. So that's good!
Basically the founder lived the high life with his partner, multiple houses, a yacht, etc etc, and it looked like a stunningly successful and honest exchange. He died in India when he was there apparently building orphanages.
It turns out that he ran the entire thing from his laptop and nobody else could get in as he didn't share the passwords to anything. It further turns out that when people started investigating properly, the whole enterprise was insolvent, because he had viewed the customer funds and company funds as personal funds, 'normal' money and cryptocurrency alike, and he had gambled most of the cryptocurrency away in bad trades on other exchanges, and most/all of the 'fiat' was gone too. He also turns out to have had a history of involvement in scammy 'hyper-growth investment!' stuff.
His death looks very convenient, and IIRC his widow won't allow the body to be exhumed and checked to make sure it's really him (it probably is, I have no idea). The funds were gone.
As a neutral observer, she sounded somewhat believable, especially since she basically was along for the ride, and has almost nothing to show for the scam (and a lot of downside from being the person targeted by the ire of depositors)
https://www.cbc.ca/news/canada/nova-scotia/jennifer-robertso...
> The company's CEO and founder, Gerald William Cotten (born 11 May 1988),[2] died in 2018 after traveling to India. Up to C$250 million (US$190 million) in cryptocurrency owed to 115,000 customers was missing[3] or could not be accessed because only Cotten held the password to off-line cold wallets.[4][5][6]
> Blockchain analysts have reported that they are unable to find evidence of Quadriga's cold wallets on the blockchain, a public ledger used for cryptocurrencies.[37][38]
> Ernst & Young found five Quadriga cold wallet addresses, but they were empty, containing no cryptocurrency since April 2018.
https://amycastor.com/2019/02/12/how-the-hell-did-we-get-her...