Canada's largest cryptocurrency exchange owes its customers $190million

Share
Canada's largest cryptocurrency exchange owes its customers $190million

Canadian cryptocurrency exchange QuadrigaCX may be reaching for the ouija board - after its founder, Gerald Cotten, died suddenly with the only password, leaving his widow unable to access £145m in client funds.

Cotten, 30, died in India last December from complications from Crohn's disease, according to the company.

The debt filing comes weeks after Robertson announced that Cotten had died - an event she described as "a shock to all of us".

Bitcoins must be stored on servers and can be kept in "hot wallets", for immediate transactions, or "cold storage" as a sort of digital savings account to protect them from hackers, CBC News reported.

'[This includes] attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit.

QuadrigaCX had been plagued with legal trouble in the past year: In early 2018, the Canadian Imperial Bank of Commerce froze more than US$25m of QuadrigaCX's assets after noticing "irregularities" in the exchange's payment processes. Cotten's widow said she had an expert try hacking into the founder's computers and encrypted email, but to no avail. The company's stance has gone from "Quadriga's inventory of cryptocurrency has become unavailable and some of it may be lost" to "most, if not all" of their customers will suffer damages. "Despite repeated and diligent searches, I have not been able to find them written down anywhere".

While Robertson has hold of the founder's laptop, she is unable to retrieve any passwords for it.

In a statement posted on its website on January 31, QuadrigaCX said that it applied for creditor protection in the Nova Scotia Supreme Court "to allow us the opportunity to address the significant financial issues that have affected our ability to serve our customers".

Ms Robertson said in her affidavit she had received online threats and "slanderous comments", including questions about the nature of Mr Cotten's death, and whether he is really dead. She also asked the court to appoint worldwide accounting firm Ernst & Young to oversee its dealings while QuadrigaCX tries to recover the lost holdings.

Share

Advertisement

Related Posts

Tom Brady Shares His Comical First Impression of Rob Gronkowski
Like a lot of weapons in Brady-led offenses, the raw stat sheet doesn't jump at you - six catches, 87 yards. But he found a way to add to his lasting impression as an indispensable part of the Patriots' dynasty.

Instagram viral egg has big reveal plans during Super Bowl LIII
The Instagram account world_record_egg set out with one misssion, to steal Kylie's crown for most likes on an Instagram photo. Eugene was first posted on Instagram on January 4 as part of an experiment to set a new world record for its number of likes.

Sarri makes Eden Hazard statement after Higuain scored two goals
For us it's very useful to have Higuain because he will be able to score a lot of goals, but it's also important for Eden'. Eden Hazard believes Chelsea can repeat their surprise trick of beating Manchester City next week.

El Chapo trial: First day of jury deliberations ends without verdict
The defendant appeared to stay calm and serious, staring at the jurors as they were getting charging instructions from the judge. The defense claims his role has been exaggerated by cooperators who are seeking leniency in their own cases.

Donald Trump predicted that the Patriots will win the Super Bowl
When the golf player was asked if he'd let Barron play football, Donald responded, " It's very, it's very tough question . He said that football was a risky sport, but that the protective equipment had not solved all of the safety problems.

Samsung Accidentally Leaked its Own Advert, and it Features the Galaxy Fold
The abilities of this camera array here are likely baseline and just as good - for the average person - as the Galaxy S10 . The power and volume buttons are housed on the right edge, and the SIM tray is seen on the left edge of the device.

Federal prosecutors subpoena Trump’s inaugural committee
Trump's former personal attorney Michael Cohen has been extensively interviewed by prosecutors in the Southern District office. Any donations to the inaugural fund from foreign individuals and businesses would be a violation of finance laws.

Watch the first firing of SpaceX's new Starship Raptor rocket engine
It comes just days after Musk's Starship prototype was knocked over by 50mph winds in Texas and suffered extensive damages. Musk has been teasing his Twitter followers for days with the promise of a video of the new engine's first firing.

Kremlin stresses only Venezuelans themselves can find way out of crisis
He added that Venezuela is being "threatened by the biggest powers in the world". Maduro alleged US policies could trigger a civil war in his country.

'The Handmaid's Tale' Season Three Trailer Drops During Super Bowl
An exciting trailer for Toy Story 4 was also released, making us even more excited for the release this summer. So far, one of the biggest trending ads was the Season 3 trailer of The Handmaid's Tale .

© 2015 ExpressNewsline. All Rights reserved.