£145m cryptocurrency password goes to grave with QuadrigaCX co-founder Gerald Cotten

Coinbase Crypto Cold Wallet

Coinbase Crypto Cold Wallet

Like many exchanges, QuadrigaCX only kept a small amount of cryptocurrency in its "hot wallet" for transfers. What is particularly problematic for Quadriga is that its CEO seems to be the only person who held the keys to those transactions.

In her affidavit, Robertson complained that some of the online chatter raised questions about "whether (Cotten) is really dead".

His widow, Jennifer Robertson, in a sworn affidavit court document said Quadriga and the other companies had no offices and their business was conducted on Mr Cottens computer.

But the death certificate, issued by the Government of Rajasthan's Directorate of Economics and Statistics and obtained from a source involved in the events, indicates that Cotten died on December 9 - the same date given in a December 12 statement of death from a Halifax funeral home filed in the Nova Scotia court by his wife, Jennifer Robertson.

Investors in QuadrigaCX, Canada's largest cryptocurrency exchange, have been unable to access their funds since its founder, Gerald Cotten, died a year ago. "Despite repeated and diligent searches, I have not been able to find them written down anywhere", she writes. Experts, meanwhile, were only met with "limited success" in their attempt to hack into the encryption.

The statement added: "Unfortunately, these efforts have not been successful".

"This is a tough lesson learned".

Calgary customer Elvis Cavalic, who bought a few hundred dollars of Bitcoin using Quadriga's platform, told CBC that he couldn't withdraw $15,000 from his account.

All we can say for certain right now is people don't have their money, and they're very unhappy. "I'm kind of preparing for the worst".

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

The CEO's death certificate is attached to Robertson's affidavit.

The troubled company has applied for creditor protection as it struggles to access its funds and repay its customers.

"If this can not be done in an orderly fashion, many, if not all users, may suffer damage", she wrote.

That's not all the trouble for the Canadian company either, which has since filed for creditor protection in the Nova Scotia Supreme Court. Yet, in the analysis performed by ZeroNoncense through the blockchain, there is no funds that QuadrigaCX claimed to have.

Canada's largest cryptocurrency exchange - which owes its customers $190million (£146million) - has been left with no way to access the majority of its funds after the co-founder died, taking with him the only password.

Now, the company is looking into selling its operating platform to stay afloat. As well, she said she has received online death threats.

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