Home pages - full list (A-Z)

Canada’s Largest Crypto Exchange Files for Bankruptcy

Canada’s largest crypto exchange, QuadrigaCX, has filed for bankruptcy. Additional bad news for the crypto industry was hardly needed given cryptocurrency prices 80 percent below 2018 peaks. Price predictions are now “pointless,” one analyst says.

Currency-News BTC USD
Email share     Facebook     LinkedIn    Twitter

With cryptocurrencies treading water at exceedingly low levels (by recent standards), the crypto industry was hardly in need of more depressing news. This was, though, exactly what was delivered on Friday when it was announced that Canada’s largest crypto exchange, QuadrigaCX, had filed for bankruptcy.

Though the flagship digital currency, bitcoin, was little changed in response to the news, it continues to trade at levels in and around $3,500—nearly 80 percent lower than last year’s high of $17,252.

QuadrigaCX has reportedly lost access to its cold storage wallets in which $190 million worth of bitcoin, bitcoin cash, bitcoin cash SV, bitcoin gold, litecoin and ethereum were held.

The bankruptcy is linked to the death in December of QuadrigaCX’s founder and CEO Gerald Cotton, who reportedly died with all knowledge of how to access QuadrigaCX’s cold storage.

BTC to USD - 1 Week chart - Latest
BTC/USD - 1 Week Chart - Latest

Cold storage refers to offline reserves of cryptocurrency. These are deemed a necessary security precaution by crypto exchanges as they eliminate the risk that hackers accessing exchange servers or other computers might steal the entirety of the exchange’s crypto assets.

“We have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets,” QuadrigaCX said in a statement. “Unfortunately, these efforts have not been successful.”

Doubts over the security of digital currencies will continue to discourage potential crypto investors. Together with regulatory crackdowns and social media bans, these are high on the list of reasons for 2018’s crypto collapse.

For the year ahead, “price predictions are pointless,” says Matthew Morris of the Investment Week. “No one knows for certain what will happen and timescales are even harder to predict,” he adds.

LMAX Exchange analysts are happy to make a call, though. “We look for bitcoin to round out 2019 trading back in the $5,000 to $8,000 region,” LMAX’s Joel Kruger said in January.


Further Reading


Dollar Turbocharged by Economic Data; At Long-Term High Versus Euro, Franc and Krona

A turbocharged US dollar is likely to be “stronger for longer” after reaching long-term highs against a host of major currencies, including the euro, Swiss franc and Swedish krona.

Last update: 25 Apr, 2019

Aussie dollar in the trenches after low inflation result

The RBA has resisted cutting interest rates lower than the record 1.5 per cent, however, this week’s lower than expected inflation data could make a cut inevitable.

Last update: 25 Apr, 2019

Swiss Franc Slumps to 6-Month Low Versus Euro

The Swiss franc continued its shocking run of form on Tuesday, slipping against the euro to its weakest level in 6 months.

Last update: 23 Apr, 2019

8 Percent Drop Coming Soon for Australian Dollar; RBA “Wants a Weaker Currency”

HSBC has reaffirmed its US66¢ year-end forecast for the Australian dollar, thereby signalling an upcoming 8 percent slide in the world’s fifth most traded currency.

Last update: 22 Apr, 2019

SGD/MYR at 17-Month High; Ringgit Slumps on FTSE Index Deselection

What is arguably Southeast Asia’s most important exchange rate, Singapore dollar-Malaysian ringgit, leapt on Thursday to its highest level since November 2017, driven by FTSE Russell’s decision to reconsider Malaysia’s inclusion in an important bond index.

Last update: 18 Apr, 2019


Tags: Currency-News , ,

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.

Get a Better FX Deal when you Send and Spend Abroad.


Do NOT follow this link or you will be banned from the site!