Currency exchange QuadigaCX has potentially lost $ million in customers finances after the sudden death of its founder. News. Bitcoin: 24,; Bitcoin Cash: 11,; Bitcoin Cash. One of Canada’s biggest Bitcoin (BTC) exchange – QuadrigaCX – has possibly lost $ Million in cryptocurrencies after its founder and CEO died suddenly last December in India due to Crohn’s disease. The death of its CEO, Gerald Cotten, was announced by the exchange early January this year. To date, the team at the exchange has been unable to access the locked up Bitcoin (BTC. Imagine if your bank froze your savings account because the only person with the combination to the vault had died. Investors in a Canadian crypto-currency exchange are in a similar fix after the.
190 million bitcoin lost$ Million in Cryptocurrency Missing Due to Lost Password
Now, QuadrigaCX may have to put itself up for sale in an effort to distribute funds to its clients, according to Robertson's affidavit. QuadrigaCX has posted a letter from its board of directors telling customers that the website will be updated after Tuesday's court hearing.
Aaron Matthews, the head of operations, is Robertson's choice to assume the role of interim president and CEO, according to her statement on the company's Facebook page.
Shows Good Morning America. World News Tonight. This Week. The View. What Would You Do? Sections U. Virtual Reality. We'll notify you here with news about. Turn on desktop notifications for breaking stories about interest? MORE: How long can cryptocurrencies like bitcoin shine? Comments 0. Georgia Senate runoff election results QuadrigaCX maintained it had done nothing wrong, and accused the bank of foul play.
His widow, Robertson — who, at the time of her husband's death, was not officially employed by QuadrigaCX — has reportedly tried to access the cold wallet and company documents without success. In the January 30th court filing, she states:. Despite repeated and diligent searches, I have not been able to find them written down anywhere.
She also stated that Cotton took sole responsibility for the handling of funds and the banking and accounting aspect of the business, which appears to be why only he had access to the cold wallet. According to Robertson, despite employing the help of experts, she has been unable to access these funds stored on the cold wallet.
She also states that Cotton was very security conscious, and held email accounts that would automatically delete encrypted messages after a short period, making accessing some company data very difficult. Not well. Faced with the prospect of losing access to hundreds of millions of dollars, customers have taken to dedicated Reddit threads to discuss their next move and the intricacies of the case.
Many suspect foul play, questioning the company's motivations. Why did only one person have access to the cold wallet?
Why did the company wait over a month to tell customers that Cotton had passed away, and why did it continue to allow deposits during this time? Why did Cotton write his will two weeks before he died? There are even those who don't really believe that Cotton has died, calling into question the Indian death certificate and the circumstances around the cold wallet. Some experts in the cryptocurrency field have suggested that QuadrigaCX may never have actually operated certain cold wallets in the first place.
We reached out to Mike Patryn, a co-founder of QuadrigaCX, and asked him some of the key questions that customers and online commentators are looking for answers on. Firstly, we asked if it was usual practice for a cryptocurrency exchange to give access to a cold wallet to just one person, and whether he believed that Cotton would have sole responsibility for this. Next, we covered some of the theories that have surface on the internet around these cold wallets.
Some commentators, such as Taylor Monohan, mentioned earlier, have questioned if these cold wallets even existed in the first place. Unfortunately, there isn't much to be done about slanderous comments on social media. As customers urgently wait for an update, QuadrigaCX has posted an message on the front page of its website.
It states that it is working to locate and secure the cryptocurrency stored in its cold wallets, but with no success to date. It has also applied for creditor protection, with the first hearing to be held on the 5th February. Whatever happens next, it seems that the saga is far from over, and that customers could have a long wait on their hands to get their money back.
We're sorry this article didn't help you today — we welcome feedback, so if there's any way you feel we could improve our content, please email us at contact tech. Jack is the Content Manager for Tech. He has been writing about a broad variety of technology subjects for over a decade, both in print and online, including laptops and tablets, gaming, and tech scams.
As well as years of experience reviewing the latest tech devices, Jack has also conducted investigative research into a number of tech-related issues, including privacy and fraud.
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