Investors’ Millions In Cyptocurrency Inaccessible After QuadrigaCX’s Founder Died With Passwords
Millions in cryptocurrency may be gone forever as Gerald Cotten, founder of QuadrigaCX suddenly died. It was revealed that he had sole access to the almost $190 million funds which means he is the only person who had the password to the "cold wallet" where most of the cryptocurrencies were stored.
As a result, when he passed away, the investors' money was locked away, leaving around 115,000 users without their funds, CBC News reported. Some of the affected investors already went to the court in Halifax, and together with their lawyers, they will try to get back their money back.
Cotten's sudden death was revealed via Facebook but it appears that the notice came very late as the QuadrigaCX's owner actually breathe his last on Dec. 9 while it was only announced on Jan. 15. In the post written by his wife, Jennifer Robertson, it was indicated that the CEO died in India due to complications with Crohn's disease. He traveled to the region to open an orphanage for children's safe refuge.
The owner of Canada's leading cryptocurrency exchange died at the young age of 30 and he was described as an honest, transparent, hardworking and dedicated man who greatly contributed to the growth and development of the CryptoCurrency business. The post also announced that Aaron Matthews, QuadrigaCX's current Head of Operations, has been chosen to assume the role of acting President and CEO.
"We are confident in his ability to ensure continued and successful operations as QuadrigaCX provides its customers with an easy to use platform that simplifies the process of buying and selling Crypto Currencies," the note reads.
With regards to Cotten's death and the case of missing passwords to the crypto funds, Jennifer Roberts went to court to shed light on the complicated situation. In her affidavit, she explained that the funds are inaccessible since only her husband knows the password to the accounts.
"The laptop computer from which Gerry carried out the company's business is encrypted and I do not know the password or recovery key," she attested.
Meanwhile, on Feb. 5, QuadrigaCX received an order for creditor protection from the Companies' Creditors Arrangement Act (CCAA). This was issued by the Supreme Court to give the troubled company the opportunity to solve its current financial issues with their customers. The court appointed Ernst & Young Inc. to supervise the proceedings as QuadrigaCX tries its best to address its responsibilities to its investors or customers.