Cryptocurrency
Cryptocurrency Exchange Says It Can’t Access Millions After CEO Unexpectedly Died via @NPR
As reported by NPR, “The QuadrigaCX cryptocurrency exchange says it can’t access some $190 million in bitcoin and other funds after its founder and CEO, Gerald Cotten, died at age 30 — without sharing the password for his encrypted laptop. “Cotten was ‘the sole officer and director’ of the Canadian cryptocurrency exchange when he died, […]
As reported by NPR, “The QuadrigaCX cryptocurrency exchange says it can’t access some $190 million in bitcoin and other funds after its founder and CEO, Gerald Cotten, died at age 30 — without sharing the password for his encrypted laptop.
“Cotten was ‘the sole officer and director’ of the Canadian cryptocurrency exchange when he died, said his widow, Jennifer Robertson, in an affidavit that is part of the company’s request for court assistance as it seeks protection from its creditors.
“The debt filing comes weeks after Robertson announced that Cotten had died — an event she described as ‘a shock to all of us.’
“‘Gerry died due to complications with Crohn’s disease on December 9, 2018 while travelling in India,’ Robertson wrote, ‘where he was opening an orphanage to provide a home and safe refuge for children in need.’
“Robertson, who is executor of Cotten’s estate, also announced that Quadriga has put new limits on daily withdrawals, trying to keep pace with demand and resolve transaction problems that lingered through much of last year.
“In an update on its website about the debt filing, the exchange says it is facing ‘significant financial issues’ that are keeping it from disbursing customers’ funds.
“The company says that it has ‘very significant cryptocurrency reserves’ — but that it can’t locate or secure those reserves.
“As of the end of January, Quadriga had some 115,000 users with balances in their accounts, Robertson said. The exchange’s obligations to those users include cryptocurrency that was valued at some 180 million Canadian dollars ($137 million) in mid-December. The bulk of the funds is in bitcoin; smaller amounts are held in other popular cryptocurrencies, including Litecoin and Ethereum. An additional CA$70 million ($53 million) is in the form of government currency.”