Profit

Cryptocurrencies Worth Millions Frozen After Canadian Founder's Death

Quadriga has 363,000 registered users and owes a total of C$250 million to 115,000 affected users.

 Share
EMAIL
PRINT
COMMENTS
Cryptocurrencies Worth Millions Frozen After Canadian Founder's Death

Million in cryptocurrencies have been frozen in the user accounts of Canadian digital platform Quadriga


Toronto: 

About C$180 million ($137.21 million) in cryptocurrencies have been frozen in the user accounts of Canadian digital platform Quadriga after the founder, the only person with the password to gain access, died suddenly in December.

Gerald Cotten aged 30 died from complications with Crohn's disease while volunteering at an orphanage in India, according to the Facebook page of Quadriga CX, which announced his death on January 14.

The platform, which allows the trading of Bitcoin, Litecoin and Ethereum, filed for creditor protection in the Nova Scotia Supreme Court last week.

Quadriga has 363,000 registered users and owes a total of C$250 million to 115,000 affected users, according to an affidavit filed by Mr Cotten's widow Jennifer Robertson on behalf of the company.

Ms Robertson said in the affidavit that Mr 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."

Ms Robertson said she was not involved in Mr Cotten's business while he was alive and did not know the password or recovery key.

"Despite repeated and diligent searches, I have not been able to find them written down anywhere," she said.

Ms Robertson said that she has consulted an expert who has had "limited success in recovering a few coins and some information" from Mr Cotten's other computer and cell phones, but the majority remains untouched on his main computer.

Quadriga's troubles highlight the unique challenges of cryptocurrencies, Dean Skurka, vice president of rival platform Bitbuy.ca, said in an interview with the Canadian Broadcasting Corp.

"This really highlights the need for the government to take action and regulate cryptocurrency exchanges," Mr Skurka said.

Ms Robertson said in her affidavit she has received online threats and "slanderous comments", including questions about the nature of Mr Cotten's death, and whether he is really dead.



Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top