Cryptocurrency exchange founder's death locks Sh13.7bn


Security of cryptocurrencies has always been a concern for investors as more than $1.1 billion was lost to crypto-thefts in the first six months of 2018, according to cyber-security company Carbon Black in MA.

Posts on the company's Facebook page have questioned the veracity of Cotten's death and claim that customers were told their fund transfers were underway even after Cotten died.

The company's digital platform allows trading of Bitcoin, Litecoin and Ethereum.

Robertson said in court filings that while she is in possession of Cotten's laptop, it is encrypted and is now inaccessible.

The company is due in court in Nova Scotia on Tuesday for a preliminary hearing on appointing firm Ernst and Young as an independent monitor to oversee the proceedings.

"Unfortunately, these efforts have not been successful, " the board, however, noted.

The CEO's widow Jennifer Robertson has also said that she doesn't have access to any of these accounts and that the laptop, which Cotten used for the exchange, is encrypted.

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QuadrigaCX has since experienced major issues of pumping out customers' funds to their accounts, with the crypto exchange saying it is going through "significant financial issues".

She also said that there have been threats made against her and there has been a "significant amount of commentary on Reddit and other web based platforms about the state of Quadriga, Gerry's death (including whether he is really dead) and missing coins".

Robertson said in the affidavit that Cotten's main computer contained a "cold wallet" of cryptocurrencies, which is only accessible physically and not online, and his death left "in excess of C$180 million of coins in cold storage".

She added: “After Gerrys death, Quadrigas inventory of cryptocurrency has become unavailable and some of it may be lost.”.

According to the Sky News, founder of QuadrigaCX, 30-year-old Gerald Cotten, died of alleged complications with Crohn's disease during a trip to India where he had been billed to inaugurate an orphanage last December.

Quadriga's "cold wallets" contain inaccessible assets belonging to around 115,000 customers, according to Robertson's court filings. His widow has signed an affidavit to confirm that the cryptocurrency is owed to customers, but that neither she nor anyone else has the necessary codes to access the cold-stored cash.

Christine Duhaime, a lawyer and founder of the Digital Finance Institute, said users would have little recourse to recover the funds. A technical expert they hired hasn't been able to bypass the encryption, she said. The document showed Quadriga has $30 million in bank drafts, many of which it has had trouble depositing.