QuadrigaCX scandal worsens; CoinField offers an alternative in Canada and beyond.

in bitcoin •  2 months ago

Theft of digital assets due to a security breach of a cryptocurrency exchange is a common headline. A recent loss of user funds at Canadian cryptocurrency exchange QuadrigaCX, however, has highlighted that the security of digital assets goes beyond thwarting hackers.

In a heavily misguided effort to secure user funds, the private keys to assets deposited at cryptocurrency exchange QuadrigaCX were only accessible by the company’s CEO. Due to a lack of foresight, the exchange’s executives had set no alternate provision to access the funds.

In a recent turn of unexpected events, the exchange’s CEO died, rendering an incredible amount of Crypto funds ($190 million) inaccessible. These funds were the property of users, not the exchange.

In a more traditional financial market, the decision to poorly handle user funds would be deemed as moral hazard, which is an action undertaken by a party that puts risk to assets owned by others. Cryptocurrency exchanges regularly participate in moral hazard as the unregulated state of the market places limited liabilities on them.

Such a state of exchanges, which are the gateways to the Crypto ecosystem, not only harms the members of the existing Crypto community, but also prohibits the growth of the market.

Given the amount of risk appropriated to user funds when asset security is neglected, it’s important to recognize exchanges that go out of their way to secure assets. CoinField, another Canadian cryptocurrency exchange, has taken the steps to ensure moral hazard never becomes a part of its operations.

Prioritizing Security

CoinField’s website boldly pitches that the exchange operates in 101 countries and supports 6 fiat currencies: USD, CAD, GBP, EUR, JPY, and AED. The exchange also asserts its user friendliness by providing dashboards for both professional and novice traders.

Security, which is the exchange’s best trait, is oddly hidden in their website’s footer.

Layers of Security

This XRP-friendly exchange exercises more security measures than possible every other exchange. First and foremost, the exchange operates on an isolated network of servers. While the isolated state should be sufficient to keep the exchange’s data out of reach, multiple layers of securities need to be passed to gain access, thereby further enhancing the exchange’s security.

The exchange primarily utilizes cold wallets, which are offline storage systems that ensure the funds are out of reach in the case of a breach. However, for short periods of time, asset flow necessary to remain exchange operations must be placed in a warm wallet (not a hot wallet).

Wide Range of Trading Pairs.

To ensure the security of warm wallets, CoinField has built, from scratch, a remarkable security vault; this vault secures sensitive information behind a virtual cloud that can only be located internally.

CoinField’s novel approach to fund storage, even those floating for operational coverage, keeps funds out of reach of any nefarious individual or group.

Proactive Measures


To avoid the scenario faced by QuadrigaCX, the exchange utilizes multi-sig wallets.

This ensures that transactions are approved by a number of people rather than one person. Furthermore, multi-sig wallets provide far greater security than traditional wallets as more than one key is needed to approve a transaction.

Invite Friends; Get 10 XRP.

Also, it’s worth mentioning that not all security befalls on the exchange. Regardless, to give users absolute peace of mind, the exchange has taken the measures to ensure utmost security is sustained even on the user’s side.

The exchange requires the creation of strong passwords, automatically logs out inactive users to thwart unauthorized account activity, and monitors accounts for suspicious activity. Thus, the system aims for optimal security on all fronts.

Reactive security measures leave room for regrettable scenarios that can range from poor user experience to loss of user funds. CoinField’s proactive approach to security effectively delivers a positive user experience.

Security for All

CoinField’s Canadian presence makes it a top alternative to QuadrigaCX for Canadian traders. However, the exchange has a far-reaching presence.

USD, CAD, GBP, EUR, JPY, and AED.

By supporting a wide menu of fiat currencies and having approval to operate in 101 countries, this is a security-focused exchange available to the widest portion of the Crypto community irrespective of whether users prefer to trade with fiat pairs or purely Crypto pairs.

CoinField’s fees start from as little as 0.05% for market makers on certain pairs, and withdrawals are not only cheap but can also be free certain coins.

Additionally, the exchange’s proactive strategies go beyond security as the exchange has quickly recognized XRP’s rise as the second coin by market cap and thus provides primary pairings with XRP, and a robust matching engine ensures trades run smoothly across all pairs. Interestingly enough, despite the exchange’s proactive strategies and security, its operations remain lean enough to allow market making order to face some of the lowest fees in the industry: as little as 0.05% on some pairs.

Recent disastrous events regarding cryptocurrency exchanges—QuadrigaCX, Bithumb, and Cryptopia—damage the reputation of the market. Exchanges must exert greater focus on security.

CoinField’s accessibility, wide fiat support, and low trading fees make it possible for traders across the world to access one of the most secure trading platforms.


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I thank all those who are making a great effort to improve the security measures more and more to give users absolute peace of mind.


image from pixabay

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Precisely.
Security should be the key deciding factor between exchanges.

How does the scandal “worsen...?”

All I see is same old story, nothing new, the clickbait title leading to what’s probably your affiliate link... 🤔

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The scandal worsened as the exchange sent $400k to the dead CEO's wallet; this happened after the news of him passing away.

It's a gross display of negligence.

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Oh. I don’t see that mentioned in the article.

Pretty much everything about Quadriga the last months has been a gross display of negligence.

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Hi Mr. Hatu,

"..... $400k to the dead CEO's wallet.... "

First of all, we still don't know whether the CEO is dead or not. The things that are happening post death are all highly FISHY and everyone knows it, but still......?

Gross display of negligence? How can it be Sir?

This is an well-orchestrated plan to fool the general public and the SKELETONS IN THE CLOSET will tumble out very soon Sir.

What we need to do is to wait and watch!

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that's a scandal. impossible that only one person has private keys. the market needs regulations. then it will grow. greetings mima

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Regulations are certainly on the way.
Properly managed exchanges, like CoinField, won' be affected.

Waiting for btc

Posted using Partiko Android

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BTC is already available on CoinField.

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me parece una información de gran utilidad nos sirve a muchos miembros de la pagina

@hatu thank you this is full useful informations

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Thanks for the valuable information, before entering our funds in an exchange we must study all the possible information to choose a safe option. The case of Cryptopia is another terrible example of security management due to the lack of adequate backups of its keys.

Good to see that @hatu is achieving the heights on the chart of Steem.

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Thank you for the support. :)

Very good information @hatu, but the bitcoin will also be associated with this soon?

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As I mentioned above, the exchange is Ripple friendly but has BTC pairs. In fact, it has trading pairs for all major coins.

Thanks for the post,it might be helpful for anybody

@hatu, thank you for sharing this sad, and very strange news. Cotten died in strange circumstances!?

Cotten signed a will on Nov. 27 that included a $100,000 provision for his two Chihuahuas. He passes away in a town in India where people had died in the past buying fake dead certificates. Planning a will before you died its very strange and perfect calculated move special when $190 million are involved!?

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I wasn't aware of the will part; that's quite suspicious.
This scandal just shows that Crypto space needs to pay closer attention to how their funds are managed by exchanges.

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This is so sad. I know two investors who lost money on the exchange. is there any hopes that they will pay people? its absurd because its in Canada too. I cant believe they allowed them to operate under such circumstances. the government is really useless.

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Crypto regulations are new and governments are not deeply involved in them yet. QuadrigaCX is just one example in a long line of mishaps.

The effort to secure funds relies on the exchange and people need to recognize that. Here's a look at the security measures that need to be placed to keep traders' funds secured: https://www.coinfield.com/support/most-secure-bitcoin-exchange-canada

Amazing, you know from the first day of his birth, mankind is ripe for death. I mean death can come anytime but still exclude the risk that could come out of it.

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You're right.
QuadrigaCX's decision was extremely short-sighted, and that's if they're given a positive benefit of the doubt.

Thanks for your information i must say

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You're welcome.

Thanks a lot @hatu for keeping us updated with these great posts! All the best Mark

Posted using Partiko Android

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You're very welcome, Mark.

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Thanks a lot for the upvote

Posted using Partiko Android

This shit is going to lead to regulation in canada.

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That may be a good thing. Custodians of people's wealth need to be reliable.
Legitimate operations like CoinField won't face any problems.

I have read this news in our local indian news paper, He was died in india. The company is trying to exchange from other exchange to withdraw crypto

Posted using Partiko Android

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Thank you for upvot me..I am so like your post. Keep it up bro

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again great post keep it up @hatu :)

Ini adalah info yang sangat berguna untuk kami...

nice photo and post

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Never leave your crypto in a exchange. One of the truest examples right here. Don't even leave your crypto in Binance. Check out this short video on buying bitcoin at a coinstar.

these are not good solutions, in my opinion it can not do anything good

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Care to elaborate on how?
CoinField has the most rigorous security among all CEX.

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