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New Netflix Documentary Takes a Closer Look Into Bitcoin Scams

Ponzi Scheme

New Netflix Documentary Takes a Closer Look Into Bitcoin Scams

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Bitcoin scams have become a major nuisance online, costing investors around the world their life savings. One notable instance in which a man lost over $500,000 has become the subject of a new documentary on Netflix that explores his individual case and its context in the broader world of online Bitcoin scams.

Man Loses Everything to Bitcoin Scam

Tong Zou is the subject of the new documentary that details the story of how he lost over $500,000. The loss consisted of not only his life savings but an additional $200,000 from his parents as well. His crypto investments were held by Canadian cryptocurrency exchange Quadriga CX, which has since been revealed by reports to have been operating as a large Ponzi scheme.

The loss came when one of the co-founders of Quadriga CX, Gerald Cotton, passed away unexpectedly at the age of 30. He died in possession of a password that locked an offline cold wallet containing over $190 million in crypto held by clients on the exchange. Cotton was the sole holder of this password, and the decentralized and secure nature of crypto makes it impossible to retrieve any funds without that password.

Technical experts were contacted to attempt to retrieve the funds with access to Cotton’s laptop, but there was simply no way to bypass the protection. Following the loss of access to these funds, Quadriga CX initiated the bankruptcy process. Out of the $260 million owed to the exchange’s more than 76,000 clients, only $24 million was available…

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