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

Toy Story 4 Super Bowl Trailer Now Online
A few teases here and there have made way for this latest sneak peek at Disney/Pixar's Toy Story 4 , due in theaters this summer. The good news is that it appears Woody and Bo Peep - in new threads, no less - are close by to save him.

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.

Carrie Lam wishes all a healthy and prosperous Year of the Pig
People walk inside a Chinese temple during the celebration of the Lunar New Year in Chinatown in Bangkok, Thailand. Fireworks, special clothes, red lanterns and lots of food will mark the occasion to welcome the Year of the Pig .

'Dangerous' Antarctic glacier has massive hole, scientists warn
It's growing at the bottom of Thwaites Glacier in West Antarctica, and it's rapidly enabling ice melt above it. These results highlighted that ice-ocean interactions were more complex than previously understood.

New York Knicks: Trading Porzingis could be the beginning of a dynasty
Porzingis will reportedly not play this season as he continues recovering from an anterior cruciate ligament tear he suffered a year ago.

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.

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.

Microsoft planning to take Xbox Live to a wide range of platforms
Microsoft will reveal more at the Game Developers Conference, which starts on Monday, March 18 and continues until March 22. Xbox Live on your iPhone? Microsoft plans to expand Xbox Live to other platforms, including Nintendo Switch and mobile.

Jose Mourinho takes a tumble at ice hockey match
Avangard plays their home games in the city just outside Moscow after their usual arena was found to be unsafe for hosting games. He was joined by Mike Phelan as first-team coach together with Michael Carrick and Kieran McKenna this season at Old Trafford.

Demi Lovato Deletes Her Twitter - Find Out Why
Demi Lovato set social media alight based on a single tweet involving a meme circulating during Sunday's Super Bowl . Rapper Wale , directly calling out Lovato, tweeted, "Why is somebody freedom amusing ".

© 2015 . All Rights reserved.