QuadrigaCX Allegedly Traded Against Its Own Customers Without Assets To Back Them (ambcrypto.com)

Posted by BeauHD on Monday March 11, 2019 @01:40PM from the time-for-regulation dept.

geoskd writes: QuadrigaCX, the Canadian crypto exchange that made news recently with the passing of its CEO, Gerald Cotten, has been alleged to have been buying cryptocurrency from traders on its platform without having actual assets to perform the transactions. The transactions showed credit to the customers accounts, but when the customer tried to withdraw cash, they had to wait until other customers deposited cash before the funds became available. There is also an accusation that this behavior exists at many other crypto exchanges as well. Perhaps it is time to take a fresh look at Tether...

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Re:"Perhaps it is time to take a fresh look at..." by Guspaz · 2019-03-11 16:10 · Score: 5, Informative

Except your money in a bank account is protected by the CDIC (if you're in Canada, or the FDIC if you're in the US), and there are all sorts of regulations to make sure that banks have enough money on hand to cover withdrawals under normal circumstances.