Millions in cryptocurrencies frozen after Canadian founder's death

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

Cryptocurrency Exchange QuadrigaCX Loses US$145 Million With Death Of CEO

Cotten died "while traveling in India, where he was opening an orphanage to provide a home and safe refuge for children in need", the company's social media page said.

The countrys largest cryptocurrency exchange, QuadrigaCX, owes its customers about $190 million in cryptocurrency and cash.

In her affidavit, Robertson said QuadrigaCX kept very little cryptocurrency in hot wallets.

"After Gerry's death, Quadriga's inventory of cryptocurrency has become unavailable and some of it may be lost", Cotten's widow Jennifer Robertson said in an affidavit.

Robertson wrote that her husband's laptop is encrypted and that she nor other consultants have been able to recover its contents.

That's not all the trouble for the Canadian company either, which has since filed for creditor protection in the Nova Scotia Supreme Court.

Cold storage is an offline digital wallet that is not connected to the internet thus shielding the wallet from unlawful breaches, hacks and other susceptibilities that an internet-connected system is usually vulnerable to.

Gerald Cotten, CEO and sole director of the trading platform QuadrigaCX, was travelling in India on December 9 when he died suddenly from complications linked to Crohn's disease, court documents say.

Investors in QuadrigaCX, Canada's largest cryptocurrency exchange, have been unable to access their funds since its founder, Gerald Cotten, died previous year.

Canada's leading cryptocurrency exchange company has said it can not repay $190m (£110m) to clients because its founder died with their passwords. "Despite repeated and diligent searches, I have not been able to find them written down anywhere".

Cryptocurrency exchanges have been under increased pressure as a result, as users look to cash out, said Duhaime.

The death certificate, issued on December 13, identifies him as "Gerald William Cottan" and names Robertson as his wife.

A Canadian court today granted legal protections to a Great White North cryptocurrency exchange that is holding some $190m that can't be accessed - because its founder, the only person with the passwords to the digital vaults, died. Yet the Rajasthan document is the strongest evidence yet for QuadrigaCX's story, having been obtained from the government office responsible for tracking such information.

Also surfacing on Tuesday, via CoinDesk, was the first public copy of what's said to be Cotten's death certificate.

Robertson said Quadriga would consider selling its cryptocurrency platform as an option to fulfill its obligations to customers and creditors.

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