Personal
- My name is Eric S. I’ve lost everything in this debacle.
- My life has changed drastically.
- I was in disbelief and depression for a few months.
- Finally I accepted the reality we may never get anything back.
- My family and friends have helped support me through these tough times.
- I had over 1M$ from family and friends ready to enter the bitcoin space until Quadriga fell through.
- Everyone I know in the Canadian bitcoin space was affected to varying degrees. In the back of my mind, I knew the potential for a community supported initiative.
- I came across Ethan’s idea through Reddit posts and saw value in it, but not enough clarity or community support. Fighting to survive, I couldn’t dedicate much thought or energy.
- With Matt’s recent post, I now see there's passionate humans involved in this effort. After speaking with Matt for 3 hours August 12th, I gained understanding and motivation to join the initiative.
- Every person adds value through skills or support! We have been collaborating since. On August 18th, I participated in my first Quadriga Initiative meeting. It was great to meet and speak with Ethan, Kenny, and Luis.
- It’s awesome to see the Quadriga Initiative gaining support and awareness across the country. Join in! I’m inspired by our collaboration and efforts to bring this idea to life! I still have hope that Bitcoin can bring the future we all envisioned. I would like to be a part of that future!
Reality of the Situation
- Quadriga going under is a true tragedy - not for the people who ran or were associated with the business but for the users of which I am just one.
- It’s a tremendous impact to the perception of the whole industry.
- The true value Quadriga brought to the table was the community, not the exchange or employees involved.
- Quadriga was the largest exchange in Canada until it’s demise, meaning the forefront of Canadians in the bitcoin space.
- Collectively we have enormous power, more than I can imagine.
Understanding the Structure of the Initiative
- This has nothing to do with the bankruptcy/insolvency process other than utilizing the associated information to determine losses. Participation is optional.
- The bankruptcy/insolvency process will move forward regardless.
- The community supported Quadriga Initiative and TxQuick exchange will analyze and maintain the records from Quadriga of what was lost to create an ERC20 token representing losses. (Each token = $1 CAD lost.)
- Businesses in the community (starting with TxQuick) work to recover funds over time.
- Recovery is expected to take years - not a quick process. But none-the-less, we believe this is the right thing to do. Our affected user community can be made whole again.
- We also want to prevent events like the QuadrigaCX exit in the future. This is accomplished through pushing for proof of reserves as an industry standard.
Understanding the Token/Recovery
- Affected users get tokens for free, representing verified losses. Anyone else who wants tokens has to buy/trade/receive them from affected users.
- Tokens are spent on an exchange or with interested third parties as a discount for products or services. The third party usage is to incentivize people within the affected user community to purchase goods or services from third parties including TxQuick.
- TxQuick has proposed to use 15% of gross trading revenue to pay back victims, subject to completion of a legal framework. Tokens held on the exchange would be cashed 1:1 over time.
- A token marketplace allows other businesses to participate in the recovery through promotions. It will come online approximately a year after the exchange.
- Business promotions must all accept the tokens at face value. Businesses would typically accept the tokens towards discounts. (ie 10 tokens = $10 off.) Promotions are bought for tokens and redeemed at the business towards products/services.
- While every business has the opportunity to promote themselves, it’s hoped that some will also go above and beyond - taking the opportunity to show that they are community leaders and offer really awesome deals to show support and help everyone get their lives back together.
- Tokens are burned once recovered. Token burning is competitive, with a leaderboard showing which businesses burned the most tokens. This is useful to find places accepting tokens and reward businesses which recover more. All data for the leaderboard is public on the blockchain.
- The tokens provide the opportunity and incentive for businesses and consumers to join the recovery effort. Businesses can promote themselves, consumers can find great deals, and everyone can work together to help out the recovery!
TxQuick Role
- TxQuick is about to launch as an exchange with a huge emphasis on transparency and trust.
- TxQuick is being developed by Ethan Burnside, who is highly experienced and has high integrity.
- Ethan has demonstrated his integrity in 2012-2013 when he ran BTC Trading Corp. When it was shut down, he spent personal funds to keep it running so everyone could get their money out - likely the only time in history that an exchange shut down and everyone got their funds.
- You can learn more about Ethan and TxQuick from his post. Note that it explains an older idea which Ethan had proposed to run - different from this one.
- TxQuick was started before Quadriga’s exit and has no affiliation. TxQuick has passionate, knowledgeable and strongly incentivized members, including a full legal/compliance team.
- TxQuick doesn’t require funding from Quadriga’s fallout or victims.
- Ethan is strongly in favour of publishing wallet public keys. The exchange will feature a full transparency page to allow anyone to see that all funds are fully backed. In the future, a full proof of reserves will be deployed to assure all customers that their balances are represented.
- The present proposal has TxQuick accepting the tokens at face value towards trading fees on the exchange. Affected users can use tokens to get free or discounted trading (50%+ off).
- TxQuick will also handle a token payback if/when possible, enabling tokens to be exchanged 1:1 for cash over time using 15% of gross trading revenue.
- This proposal is subject to approval by the TxQuick board. It could be changed. There is a necessary interest level from the affected user community of at least 1,000 sign-ups. Every user to join brings us closer to this goal!
Verification of Claims
- It’s proposed to verify losses based on:
- Pre-claim (E&Y user balance website) or a court process,
- KYC/AML, and
- Proof of Claim/Bankruptcy paperwork.
- Claims will be processed through the TxQuick platform. The Quadriga Initiative and TxQuick will have full ability to limit or reject any claims, particularly if the evidence is incomplete. Both parties have to approve each claim.
- The user balance website is available to confirm balances for a limited time. It could go offline as early as August 31st 5PM AST . Once it goes offline, pre-claims will no longer be possible. As no list of claimants is being published through the bankruptcy, options to validate balances are most likely limited only to expensive court procedures.
- Anyone with a balance on Quadriga can create a pre-claim by providing:
- Client ID and first name for the purposes of saving the total which you had.
- An email address for a future launch announcement (which can be a forwarder).
Meet Our Team on Telegram
- Matt - @azoundria
- Eric - @satoshisoldier
- Luis - @superluis018
- Kenny - @kenmacd
- Ethan - @eburnside
- https://t.me/QuadrigaInitiative
TL;DR
Our community initiative provides affected users of QuadrigaCX a chance to recover some or all of their losses over time. TxQuick will launch the first Proof of Reserves exchange, proving that all customer funds are fully backed! Once 1,000 sign-ups have accumulated, Quadriga Initiative and TxQuick will initiate the token/recovery program.
If you wish to participate, please sign up at https://www.quadrigainitiative.com/.
Requirements to Set Up a Pre-Claim
- Anyone with a balance on Quadriga can create a pre-claim by providing:
- Client ID and first name for the purposes of saving the total which you lost.
- An email address for a future launch announcement (which can be a forwarder).
- We are a third party website which is not connected with the bankruptcy/insolvency process. Representative counsel has not made any recommendation that you sign up.
- There is no cost to participate and the pre-claim process takes approximately 3 minutes.
- Pre-claims depend on the user balance website so they are no longer possible once that website goes offline. (Which could be as early as August 31st.)
- Please be sure to keep a copy of your bankruptcy claim paperwork for later validation!
Feel free to ask any questions, share on social media, or let us know your ideas/thoughts! Our team is also open to any media interviews/enquiries about the initiative! We need your help to get the word out!
Thanks so much!
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