Founder of crypto exchange dies taking only password (and $190M) with him

Did QuadrigaCX lie about its back up wallets in order to liquidate

Cryptocurrency exchange loses $145 million after CEO takes passwords to the grave

Canada's largest cryptocurrency exchange is due in court tomorrow as it seeks creditor protection in the wake of the sudden death of its founder and chief executive in December and missing cryptocurrency worth roughly $190-million. However, the funds stored in cold wallets were more as compared to the hot wallets.

QuadrigaCX took down its website last week and replaced it with a statement saying it had filed for creditor protection "to allow us the opportunity to address the significant financial issues that have affected our ability to serve our customers".

Robertson said in the affidavit that 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".

Gerald Cotten died aged 30 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.

What was the password again?

Robertson reportedly doesn't have business records for QuadrigaCX or its affiliated companies, and she doesn't know the password or recovery key for Cotten's encrypted laptop.

For those who missed the memo, QuadrigaCX, once Canada's largest and most popular BTC-focused exchanges, has always been under pressure.

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"Despite repeated and diligent searches, I have not been able to find them written down anywhere", the affidavit states.

"This is a tough lesson learned".

In the debt filing, Robertson said she has faced threats and has seen speculation online about whether Cotten is actually alive - some comments on Reddit and elsewhere have speculated that his death could be an elaborate ruse to siphon money away from the exchange's customers.

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

Robertson has retained an expert to try to access the funds but he has so far not been able to do so.

Quadriga CX's directors posted a notice on the firm's website on January 31 that it was asking the Nova Scotia court for creditor protection while they address "significant financial issues" affecting their ability to serve customers.

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