A 30-yrs old software engineer has lost his life savings in the Quadriga episode. His story has got an important lesson for all of us.
When it comes to financial management the biggest mistake that one can make is putting all their money in one particular instrument. Especially if they’re the instruments of financial markets, the results may be catastrophic. An example of those results has recently emerged in the ongoing saga of Quadriga CX, and the victim is a 30-yrs old software engineer working in United States.
Tong Zou was working in California as a software engineer for last 7 yrs. However, recently he had been mulling a shift to Vancouver, Canada. So, in order to save money on transaction fees what he thought was to use crypto for transferring all his savings. He loaded a majority of his savings – as much as $422,000 – into Bitcoin. He bought the Bitcoins, moved them to Quadriga and sold them immediately. He was expecting the money received after selling those Bitcoins to be credited into a Canadian bank account he had opened. That was in October 2018. He is waiting till date.
Tong feels that he may be one of the largest affected users in this instance. He has also made this clear by filing an affidavit in court proceedings. Speaking to Bloomberg over a phone interview he said:
“It’s all my savings, so I’m just living on what little I have left and trying to start over. It pretty much took everything away from me. I wasn’t using it for trading — I just wanted to move my money over to my Canadian bank account. What I didn’t know was that my withdrawal would be pending or incomplete and it never got deposited in my bank account. I’ve been waiting four months so far. A lot of other people are in the same situation as me”
In case you don’t know what unfolded at Quadriga CX, read my full account of the case here.
Actually Zou is originally from Canada. He grew up in Orillia, Ontario and moved to United States after graduating from University of Toronto in 2011. For next 7 yrs he worked at many reputed technology companies in San Francisco, including BitTorrent, Spigit and Walmart. Now after 7 yrs he was thinking of going back home, and the money he saved was going to help him settle down there. However, now his world has been turned upside down by this fiasco. He said:
“I was going to use that money for a deposit on an apartment, but now I can’t do that anymore. And now I’m currently searching for a job, so it’s kind of a bad time for me.”
Tong’s story has an important lesson for all of us – NEVER EVER load all your money into one thing – be it crypto or anything else. If you do, you’ll have no one to blame except for yourself.