Gerald Cotten, 30, solely knew the passwords to access customers’ money – after his demise his wife is now receiving threats.
Canada’s leading Cryptocurrency exchange company says it cannot repay $190m (£110m) to clients because its founder died with their passwords.
QuadrigaCX’s founder Gerald Cotten, his wife reasoned his death at age of 30 “due to complications with Crohn’s disease” while travelling in India to open an orphanage in December.
No other members of the team could access the stored funds but only Mr. Cotton had the sole responsibility, his wife states in a sworn affidavit on 31 January as she filed for credit protection.
Ms. Robertson said MR. Cotton or the company held the key to those $190m (£110m) which is safeguarded in ‘cold storage’. he held “sole responsibility for handling the funds and coins” and no other members of the team could access the stored funds, she added.
In spite of his wife having his laptop she failed to break through the passwords even after hiring a technical expert they failed to decode the encryption. Ms. Robertson added in the affidavit that she and her colleagues are being threatened by online Cryptocurrency communities – especially from Reddit users.
The company’s board of directors applied for creditor protection, with Ernst & Young expected to be appointed on Tuesday to oversee the proceedings on 31 January.
A statement from the board said: “For the past weeks, we have worked extensively to address our liquidity issues, which include 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, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us”.
“Unfortunately, these efforts have not been successful.”
QuadrigaCX customers are flooding the social media complaining they are unable to withdraw their money.
Ally Shapoval wrote: “Hello, Quadriga! I withdrew money from my Quadriga account to my bank more than 2 weeks ago. WHERE IS MY MONEY? STILL NOT THERE.
“I sent you emails; you are not responding.”
Another wrote in French: “I have sent lots of emails, but I just get automatic responses, I’m not even able to get my crypto out.”
Questions about whether or not the news of his death is true or is it all just a scam of the company, people doubt.
Wish you all the best,