The events of the cryptocurrency exchange QuadrigaCX, which marked 2019, are still not over, and it does not look like they will end anytime soon. Gerald Cotten, who is the founder and CEO of the exchange, has made many transactions and opened accounts with customers' funds from different exchanges, according to the report of the audit firm appointed by the court.

Ernst & Young claimed in a 70-page report published Wednesday that Gerald transferred millions of dollars of client funds to other exchanges and used them to spend his personal life in luxury. It is estimated that Cotten generally stole more than $ 200 million from its customers.

“Significant volume of crypto money transfers were made outside of the Quadriga platform and directly to Mr. Cotten's account on competing exchanges. Apparently, user-owned cryptocurrencies were both normally bought and sold on some exchanges and held back in margin trading accounts created by Mr.

Losses and transaction fees arising from Cotten's transactions have "seriously damaged Quadriga" and the audit firm is still investigating multiple wallets, whose owners cannot determine who they are.

It is estimated that between 2016 and 2018, Cotten transferred 9,450 Bitcoin, 387,738 Ethereum and 239,020 Litecoin and made a profit of $ 88 million, $ 105 million and $ 33 million, respectively, with the prices at that time. 👍

The OSC authority performed an investigation and you can find fast informations here: https://www.cbc.ca/news/business/osc-quadriga-gerald-cotten-1.5607990
Only 48 millions were recovered, a smal part of what disappeared by fraud. Further details here in the OSC website: https://www.osc.gov.on.ca/quadrigacxreport/
I suggest you to contact OSC to get further informations, for example: here I am, another victim, can I recover my account (may be part of funds are available) . Hope you’ll solve.

I add OSC contact Centre: https://www.osc.gov.on.ca/en/contactus_index.htm

Try the basic combination of the number# 55744.

Also, check out safe havens in Bahama, Bermuda, Jersey Island and Malta.

Check into Singapore banking as well as TETHER in Hong Kong and banking in Macau.

Complex if there is no longer the person who had the credentials at least, a duplicate access should be left

It is difficult to set out with claims, but you have to be faithful. You must find concrete evidence and even sue.

The events of the cryptocurrency exchange QuadrigaCX, which marked 2019, are still not over, and it does not look like they will end anytime soon. Gerald Cotten, who is the founder and CEO of the exchange, has made many transactions and opened accounts with customers' funds from different exchanges, according to the report of the audit firm appointed by the court.

Ernst & Young claimed in a 70-page report published Wednesday that Gerald transferred millions of dollars of client funds to other exchanges and used them to spend his personal life in luxury. It is estimated that Cotten generally stole more than $ 200 million from its customers.

“Significant volume of crypto money transfers were made outside of the Quadriga platform and directly to Mr. Cotten's account on competing exchanges. Apparently, user-owned cryptocurrencies were both normally bought and sold on some exchanges and held back in margin trading accounts created by Mr.

Losses and transaction fees arising from Cotten's transactions have "seriously damaged Quadriga" and the audit firm is still investigating multiple wallets, whose owners cannot determine who they are.

It is estimated that between 2016 and 2018, Cotten transferred 9,450 Bitcoin, 387,738 Ethereum and 239,020 Litecoin and made a profit of $ 88 million, $ 105 million and $ 33 million, respectively, with the prices at that time. 👍

https://www.cbc.ca/radio/checkup/how-are-you-doing-christmas-differently-1.5828195/ultra-cold-storage-and-slowing-transmission-your-covid-19-vaccine-questions-answered-1.5830788

The clue is in the word QUADRIGA. It has 4 ways of thought; realism, idealism, analysis and pragmatism all run by the 5th way: SYNTHESISM. If you also think of the four main exchanges and put the blocks within the corporation symbol you will most likely find some clue as to the covalent number within an algorithm that he used to hide the key to all 5 numerals.

Also, make certain you check out the banks of the Isle of Jersey. It is right under your nose yet most don't even give it a second thought. It is within the British Commonwealth of Nations but within the Sovereign's Domain.

Complex if there is no longer the person who had the credentials at least, duplicate access should be left

The FBI published a survey for victims. The survey asked for personally identifying information, contact information and details about QuadrigaCX accounts."If you have questions or concerns regarding your QuadrigaCX account, or you think you are a victim, be sure to find and fill out the questionnaire"

“Significant volume of crypto money transfers were made outside of the Quadriga platform and directly to Mr. Cotten's account on competing exchanges. Apparently, user-owned cryptocurrencies were both normally bought and sold on some exchanges and held back in margin trading accounts created by Mr.

Losses and transaction fees arising from Cotten's transactions have "seriously damaged Quadriga" and the audit firm is still investigating multiple wallets, whose owners cannot determine who they are.

It is estimated that between 2016 and 2018, Cotten transferred 9,450 Bitcoin, 387,738 Ethereum and 239,020 Litecoin and made a profit of $ 88 million, $ 105 million and $ 33 million, respectively, with the prices at that time. 👍
Reply Share Report

A document released on Tuesday by Ernst & Young (EY), a consulting firm acting as a trustee, states that nearly 17,000 users of the failed QuadrigaCX cryptocurrency exchange have applied for damages. However, lawyers believe that it may take years before any of them will receive at least a cent of the remaining funds.

Canadian lawyer Evan Thomas (Evan Thomas), referring to the bankruptcy trial of a large Tokyo bitcoin exchange Mt.Gox, which went bankrupt in 2014, believes that cases related to the bankruptcy of cryptocurrency companies take years. And the QuadrigaCX case is only in its second year.

The same opinion is shared by Magdalena Gronowska, one of the members of the creditors ' committee representing the interests of former clients of the exchange, and Tong Zou, a QuadrigaCX user, who claims that he lost all his savings ($400,000).

The total amount of claims is approximately $300 million, and if all goes well, the victims of the ill-fated exchange can at best count on a tenth of the lost funds, since Ernst & Young has currently been able to access only $30 million in various cryptocurrencies.

Ernst & Young said that before the distribution of funds among the affected users, all assets will be converted into Canadian dollars, but did not specify exactly how the value of cryptocurrencies will be estimated.

The process of distributing compensation can take a long time: Miller Thomson, which represents the interests of QuadrigaCX users, published a document according to which the Tax Service of Canada must file a lawsuit against the exchange before any funds can be distributed.

In addition, affected users can challenge the decision of the trustee - if one of them decides that he is owed more, this dispute will have to be resolved in court.

The founder of the QuadrigaCX exchange, 30-year-old Gerald Cotten, died unexpectedly in December 2018. According to the testimony of his widow, Jennifer Robertson, dated January 31, 2019, only Cotten had sole access to client funds that were contained in the exchange's cold wallet. In March 2019, the FBI became interested in the case.

New facts of Cotten's biography were revealed in June 2019 — Ernst & Young published a report revealing numerous cases of illegal appropriation of funds by Cotten of Quadriga users. "The user funds received and held by Quadriga appear to have been used by Quadriga for a number of purposes other than funding the withdrawal of funds by users," the report said.

Instead of storing users 'funds exclusively in Quadriga's hot and cold wallets, Cotten transferred large amounts to his personal accounts on competitors' exchanges. According to EY, Cotten either exchanged user funds or used them as collateral for his margin trading activities.

The investigation also revealed that Cotten and his wife had withdrawn "significant amounts of fiat money"from the exchange. Over the past few years, a couple of revellers have acquired — either personally or through their companies-a large number of assets, including real estate and movable property. According to the report, the couple did not deny themselves travel, using private planes.

thats hard to say i feel like its gotta be up to the somewhat up to ever the said coins actually belonged to they should be managing their own money and not let someone else do it i know it sounds bad but what did they expect how many times has it happpened befor in the past with other hedge funds, traders, corps whatever i know id never leave my investment in someone elses hands

Gerald Cotten was spinning as a pyramid scheme that provides collateral rather than other own funds to attract other funds. In the statement of OSC, he explained this system as follows:

"What's happening in Quadriga is an old-fashioned fraud wrapped in modern technology"

The events of the cryptocurrency exchange QuadrigaCX, which marked 2019, are still not over, and it does not look like they will end anytime soon. Gerald Cotten, who is the founder and CEO of the exchange, has made many transactions and opened accounts with customers' funds from different exchanges, according to the report of the audit firm appointed by the court.

Ernst & Young claimed in a 70-page report published Wednesday that Gerald transferred millions of dollars of client funds to other exchanges and used them to spend his personal life in luxury. It is estimated that Cotten generally stole more than $ 200 million from its customers.

“Significant volume of crypto money transfers were made outside of the Quadriga platform and directly to Mr. Cotten's account on competing exchanges. Apparently, user-owned cryptocurrencies were both normally bought and sold on some exchanges and held back in margin trading accounts created by Mr.

Losses and transaction fees arising from Cotten's transactions have "seriously damaged Quadriga" and the audit firm is still investigating multiple wallets, whose owners cannot determine who they are.

It is estimated that between 2016 and 2018, Cotten transferred 9,450 Bitcoin, 387,738 Ethereum and 239,020 Litecoin and made a profit of $ 88 million, $ 105 million and $ 33 million, respectively, with the prices at that time.

Hi, you can check these links below and maybe can help you. Thanks.

https://fortune.com/2019/03/04/quadriga-fbi-bitcoin/

https://slate.com/technology/2019/12/quadriga-gerald-cotten-death-cryptocurrency.html

https://www.washingtonpost.com/business/2019/02/04/cryptocurrency-company-owes-customers-million-it-cant-repay-because-owner-died-with-only-password/

MORE THAN 100,000 cryptocurrency holders have learned a hard lesson in finality, after the 30-year-old CEO of a major Canadian exchange died, effectively freezing the company’s assets.

In an affidavit filed in the Supreme Court of Nova Scotia last week, Jennifer Robertson, widow of QuadrigaCX CEO Gerry Cotten, wrote that the company owes its customers $190 million, but can’t access the funds to pay them back. In an unusual setup, Robertson said Cotten was the only person with the cryptographic keys to access $137 million of cryptocurrencies kept in “cold” storage to mitigate the risk of hacks. The remainder is similarly frozen, in cash, by ongoing disputes with a bank and payment processors. The six-year-old company is now seeking protection from its creditors as it attempts to access the lost funds. Robertson’s filing was first reported by Coindesk.

On Tuesday, a Halifax judge granted Quadriga a 30-day stay while it searches for the lost crypto, temporarily shielding the company from lawsuits by customers, some of whom reportedly own millions that are now stranded.

https://www.cbc.ca/radio/checkup/how-are-you-doing-christmas-differently-1.5828195/ultra-cold-storage-and-slowing-transmission-your-covid-19-vaccine-questions- menjawab-1.5830788

I buybitcoin at cool rate .get paid instantly..dm me on WhatsApp+2347068802410. from $50-$10000

Customers of QuadrigaCX are out as much as $190 million after CEO Gerry Cotten died; Cotten reportedly was the only one with the key to retrieve the money.

Ernst & Young afirmó en un informe de 70 páginas publicado el miércoles que Gerald transfirió millones de dólares de fondos de clientes a otros intercambios y los utilizó para pasar su vida personal en el lujo. Se estima que Cotten generalmente robó más de $ 200 millones a sus clientes.

“Se realizó un volumen significativo de transferencias de dinero criptográfico fuera de la plataforma Quadriga y directamente a la cuenta del Sr. Cotten en intercambios competidores. Aparentemente, las criptomonedas propiedad de los usuarios se compraban y vendían normalmente en algunos intercambios y se retenían en cuentas comerciales de margen creadas por el

Sr.Losses y las tarifas de transacción que surgen de las transacciones de Cotten han "dañado seriamente a Quadriga" y la firma de auditoría todavía está investigando múltiples billeteras. cuyos propietarios no pueden determinar quiénes son.

Se estima que entre 2016 y 2018, Cotten transfirió 9,450 Bitcoin, 387,738 Ethereum y 239,020 Litecoin y obtuvo una ganancia de $ 88 millones, $ 105 millones

MORE THAN 100,000 cryptocurrency holders have learned a hard lesson in finality, after the 30-year-old CEO of a major Canadian exchange died, effectively freezing the company’s assets.

In an affidavit filed in the Supreme Court of Nova Scotia last week, Jennifer Robertson, widow of QuadrigaCX CEO Gerry Cotten, wrote that the company owes its customers $190 million, but can’t access the funds to pay them back. In an unusual setup, Robertson said Cotten was the only person with the cryptographic keys to access $137 million of cryptocurrencies kept in “cold” storage to mitigate the risk of hacks. The remainder is similarly frozen, in cash, by ongoing disputes with a bank and payment processors. The six-year-old company is now seeking protection from its creditors as it attempts to access the lost funds. Robertson’s filing was first reported by Coindesk.

On Tuesday, a Halifax judge granted Quadriga a 30-day stay while it searches for the lost crypto, temporarily shielding the company from lawsuits by customers, some of whom reportedly own millions that are now stranded

Here:
https://www.coindesk.com/quadriga-creditor-protection-filing
http://femuh.wunnoutdoors.cl/
https://www.bbc.com/news/world-us-canada-47203706
https://www.cbc.ca/news/canada/nova-scotia/quadrigacx-cryptocurrency-gerald-cotten-court-bankruptcy-1.5006164
https://en.wikipedia.org/wiki/Quadriga_Fintech_Solutions
https://www.vanityfair.com/news/2019/11/the-strange-tale-of-quadriga-gerald-cotten
https://www.reuters.com/article/us-crypto-currencies-quadriga-idUKKCN1PU025
https://www.marketwatch.com/story/crypto-exchange-customers-cant-access-190-million-after-ceo-dies-with-sole-password-2019-02-04

OSC finds Quadriga CEO ran “Ponzi scheme” leading up to crypto exchange's downfall
Here is the link to that site... https://shrinke.me/x4yN

Confounded if there could be not, at this point the individual who had the accreditations at any rate, copy access ought to be left

OSC FINDS QUADRIGA CEO RAN “PONZI SCHEME” LEADING UP TO CRYPTO EXCHANGE’S DOWNFALL
new Areport released by the Ontario Securities Commission (OSC) has revealed that now-defunct crypto asset trading platform QuadrigaCX collapsed due to fraud committed by its co-founder and CEO, Gerald Cotten.
“The bulk of the $169 million in client losses – approximately $115 million – arose from Cotten’s fraudulent trading.”
The report, which was publicized by the OSC Thursday, revealed that Cotten opened accounts under aliases and credited himself with false currency and crypto-asset balances, which he traded with unaware Quadriga clients. The OSC classified Cotten’s actions as a Ponzi scheme, which is typically a form of fraud that lures investors and pays profits to earlier investors with funds from the more recent investors.
“The information presented in this report highlights the unique risks that can arise when using crypto-asset trading platforms,” said Jeff Kehoe, enforcement director at the OSC. “These risks are magnified when platforms trading securities and derivatives do not register with regulators and do not disclose critical information about their practices.”
While the cryptocurrency sector and securities regulators have clashed in the past, leaders in the Canadian crypto space have argued that what differentiates Quadriga from other crypto-platforms is security and regulation. CEO of Canada Stablecorp, Jean Desgagne, emphasized setting “a new standard of transparency and auditability,” when launching a new stablecoin cryptocurrency; and CEO of 3iQ bitcoin fund Fred Pye pointed to regulation as a key differentiator between 3iQ and fraught exchanges.
Following the news of Quadriga’s collapse last year, crypto trading platform Coinsquare released a statement pointing to its “strong relationships with the applicable regulatory authorities.” Notably, however, it was recently revealed that Coinsquare had experienced a data breach last year.
RELATED: How can Canada prevent another QuadrigaCX?
The OSC noted that Cotten sustained “real losses” when the price of crypto assets changed, which created a shortage in available assets for clients looking to withdraw funds from Quadriga’s platform.
“The founder covered this shortfall with other clients’ deposits – in effect, operating a Ponzi scheme,” the OSC said. “Staff calculated that the bulk of the $169 million in client losses – approximately $115 million – arose from Cotten’s fraudulent trading.”
The collapse of Quadriga in 2019 caused massive losses for 76,000 investors from Canada and around the world, who collectively lost at least $169 million. Approximately 40 percent of these investors were Ontarians, the OSC determined. The commission’s staff also found that Cotten misappropriated millions in client assets to fund his lavish lifestyle.
Quadriga filed for creditor protection at the beginning of 2019, when it was revealed the exchange owed customers $250 million, most of which was stored on the late CEO’s encrypted laptop. Cotten died in December 2018 due to complications with Crohn’s disease. Ernst & Young (EY) was appointed to oversee the search for the missing money.
RELATED: Widow of QuadrigaCX CEO to forfeit around $12 million to Ernst & Young
In July, it was first revealed by EY that Cotten used customer funds to trade crypto for his own account on competitor exchanges. When Quadriga collapsed in early 2019, $215 million worth of clients’ money was unaccounted for. The OSC’s investigation found that $28 million was lost by Cotten on other crypto exchanges, $115 million was lost by Cotten on Quadriga, and $46 million was recovered.
“OSC staff would likely have pursued an enforcement action against Cotten and Quadriga,” the commission stated. “However, this is not practical given that Cotten is deceased and Quadriga is bankrupt, with its assets subject to a court-supervised distribution process.”
The publishing of the report comes after a 10-month investigation undertaken by the OSC, which was completed in collaboration with securities commissions in British Columbia, Quebec, Nova Scotia,

A crypto exchange may have lost $145 million after its CEO suddenly died
By Daniel Shane, CNN Business
Updated 0251 GMT (1051 HKT) February 6, 2019




Quadriga assets frozen after founder dies


ConsenSys CEO: Crypto is crossing the chasm into popular cultur

Hong Kong (CNN Business)The death of a Canadian entrepreneur has left a huge stash of cryptocurrencies locked off from the people who own them.
Quadriga, Canada's biggest cryptocurrency exchange, said it's unable to gain access to $145 million of bitcoin and other digital assets after Gerald Cotten, its 30-year old CEO and co-founder, died of complications arising from Crohn's Disease while traveling in India.
Many of the digital currencies held by Quadriga are stored offline in accounts known as "cold wallets," a way of protecting them from hackers. Cotten is the only person with access to the wallets, according to the company.

The unusual case highlights the risks investors face looking after their assets in the thinly regulated industry.
Cotten's death has plunged Quadriga into crisis and left it struggling to figure out how to refund more than 100,000 of its users.
On Tuesday, the company said it was granted creditor protection in the Nova Scotia Supreme Court as it tries to sort out its financial mess.
"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," Quadriga said in a statement on its website. "Unfortunately, these efforts have not been successful."
Cotten's widow, Jennifer Robertson, said that the laptop that Cotten used to run the currency exchange is encrypted, according to a copy of her affidavit posted online by cryptocurrency news site CoinDesk.
"I do not know the password or recovery key," she said. "Despite repeated and diligent searches, I have not been able to find them written down anywhere."

The company has hired tech experts in an attempt to hack into Cotten's laptop and other devices to retrieve the missing cryptocurrencies, but Robertson warned that at least some of them "may be lost."
Quadriga, which is based in Vancouver, also owes about 70 million Canadian dollars ($53 million) in cash that it's unable to pay back, she said, citing difficulties accessing funds through the traditional banking system.
The Nova Scotia court appointed financial services firm Ernst & Young as an independent monitor that will oversee Quadriga's efforts to resolve its financial problems.
The Canadian High Commission in New Delhi told CNN that it was aware of Cotten's death and had "provided consular assistance," but declined to reveal further details.
While the case is unusual, it isn't the first time the cryptocurrency industry has been hit by security concerns. Hundreds of millions of dollars' worth of digital currencies have been stolen by hackers over the past few years.
The spectacular boom and bust in the prices of bitcoin and other cryptocurrencies have presented a quandary for governments around the world, which have taken differing approaches in trying to regulate their use.
Janet DiGiacomo, Jethro Mullen, Sugam Pokharel and Ahiza Garcia contributed to this report

https://betakit.com/osc-finds-quadriga-ceo-ran-ponzi-scheme-leading-up-to-crypto-exchanges-downfall/ Here is a link that will help you.

More than 100,000 cryptocurrency holders have learned a hard lesson in finality, after the 30-year-old CEO of a major Canadian exchange died, effectively freezing the company’s assets.

In an affidavit filed in the Supreme Court of Nova Scotia last week, Jennifer Robertson, widow of QuadrigaCX CEO Gerry Cotten, wrote that the company owes its customers $190 million, but can’t access the funds to pay them back. In an unusual setup, Robertson said Cotten was the only person with the cryptographic keys to access $137 million of cryptocurrencies kept in “cold” storage to mitigate the risk of hacks. The remainder is similarly frozen, in cash, by ongoing disputes with a bank and payment processors. The six-year-old company is now seeking protection from its creditors as it attempts to access the lost funds. Robertson’s filing was first reported by Coindesk.


On Tuesday, a Halifax judge granted Quadriga a 30-day stay while it searches for the lost crypto, temporarily shielding the company from lawsuits by customers, some of whom reportedly own millions that are now stranded.

Robertson, who wrote that she has become “significantly more involved in the issues” facing Quadriga since Cotten’s death, says she has his encrypted laptop and USB, which may hold the cryptographic keys to the cold storage funds, but doesn’t have the credentials to log in. She says a search of their Nova Scotia home for her husband’s business records turned up nothing, and attempts to hack the laptop by a security contractor have been unsuccessful. According to the CBC, the hardware will be turned over to an independent court-appointed lawyer.

Robertson revealed Cotten’s death on January 14 in a post on Quadriga’s Facebook page. “Gerry died due to complications with Crohn's disease on December 9, 2018 while travelling in India, where he was opening an orphanage to provide a home and safe refuge for children in need,” she wrote. Her affidavit says Quadriga’s automated systems continued to accept deposits until January 26, more than a month after Cotten’s death.

Quadriga’s strange tale is just the latest mishap to hit cryptocurrencies. Exchanges, in particular, have been the targets of hackers, racking up billions in losses. To reduce exposure, many custodians of cryptocurrency divide the funds between so-called “hot” wallets, used for day-to-day transactions, and offline “cold” storage, which is much harder for hackers to access.


LEARN MORE
This image may contain Texture, and Green
The WIRED Guide to Bitcoin
In this case, that backfired, because Cotten was allegedly the only person with access to the keys. A copy of his will obtained by the Globe and Mail, dated Nov. 27, included $100,000 for the care of his two pet chihuahuas, but apparently no contingency for his personal crypto or business affairs.

“It’s astounding to me that a company of this size can be run with the same accounting procedures of Joe’s Fish ‘n Chips, with a single person in charge and no accountability,” says Emin Gun Sirer, a blockchain adviser and professor of computer science at Cornell University. “That’s far from the norm. It’s not a good look for our industry.”

Tuesday’s hearing offered a glimpse into a one-man accounting operation.

https://twitter.com/JackJulian/status/1092807578025902082
Launched in 2013, Quadriga grew to be one of Canada’s largest exchanges. Michael Patryn, a cofounder of the company who left in 2016, said in a message to WIRED that control of the company’s cold storage crypto had always been centralized. That process didn’t initially spark alarm, Patryn said, because the company had insurance at the time, and its holdings were then relatively small. Large crypto custodians, like exchanges and foundations, typically require multiple people, each with his or her own key, to access funds. Those companies also have backups in case the keys (or the keyholders) are lost, though there are no regulations requiring it. In 2016, all of Quadriga’s directors, apart from Cotten, resigned.

It’s possible, says Sirer, that the laptop and USB could eventually be cracked, or another copy of the keys will be found. In the meantime, customers wondering if they’ll get their money are floating theories of their own. On Reddit, r/QuadrigaCX was swiftly awash in reports of transactions between blockchain addresses theorized to contain the cold storage funds, while users identifying themselves as customers wondered when they would get their money out. Some commentators---including Sirer---questioned whether Cotten had actually died.

https://twitter.com/jespow/status/1091863628066770944
https://twitter.com/el33th4xor/status/1091687563516092416
A Quadriga customer with CAD$12,640 ($9,606) stranded in the exchange said his ability to make large withdrawals had been curtailed starting last fall. He now believes the frozen funds could be part of a scam, or that the cryptocurrency the company claims to have in cold storage isn’t actually there. “I don’t think I will get the money back and I feel that I have little to no chance to get the truth or justice,” he said.

Robertson, Cotten’s widow, acknowledged the speculation in the affidavit. “There has been a significant amount of commentary on Reddit and other web based platforms about the state of Quadriga, Gerry’s death (including whether he is really dead) and missing coins,” she wrote. She also referred to threats against herself and the company’s director of operations. A lawyer for Robertson did not respond to a request for comment.

A lawyer for Quadriga directed WIRED to a statement posted on the company’s website, noting that Ernst & Young had been named as a monitor for the company. “Filing for creditor protection allows us to work diligently through the process, and to try ensure[sic] the viability of our company,” the company wrote. “We are sure you have many questions. We are in the early stages of a long process and we do not have all the answers right now.”

Robertson’s affidavit included a copy of Cotten’s death certificate, which was corroborated by a Indian government-issued document obtained by Coindesk. Canadian officials also told the CBC that a Canadian had died in India, but could not confirm the identity due to privacy rules.

As for the currency, Sirer says that given the uncertainty, Quadriga should publish the blockchain addresses of its cold storage funds, so customers could monitor the addresses for movements, which shouldn’t occur so long as the sole administrator is dead. “I think it would help with some of the conspiracy theories,” said Patryn. “I would also like to see it.”

In the filing, Robertson wrote that the company would consider a sale of its platform in order to help pay back its customers.

More Great WIRED Stories
Apple, the iPhone, and the innovator’s dilemma
The history of women in sci-fi isn't want you think
Meth, guns, pirates: The coder who became a crime boss
Blame humans, not the cold, for your canceled flight
Trippy photos capture Japan's ever-shifting aura
👀 Looking for the latest gadgets? Check out our latest buying guides and best deals all year round
📩 Want more? Sign up for our daily newsletter and never miss our latest and greatest stories
TOPICS:CRYPTOCURRENCYBITCOINCRYPTOGRAPHY
RELATED VIDEO

MORE FROM WIRED
IRS building
Feds Arrest an Alleged $336M Bitcoin-Laundering Kingpin

ANDY GREENBERG

macbooks
Apple’s Ransomware Mess Is the Future of Online Extortion

LILY HAY NEWMAN

Skulls enter a laptop.
VPN Hacks Are a Slow-Motion Disaster

BRIAN BARRETT

Coinbase Makes Its Debut—and Bitcoin Arrives on Wall Street

GREGORY BARBER

A New Facebook Bug Exposes Millions of Email Addresses

DAN GOODIN, ARS TECHNICA

Hackers Used ‘Mind-Blowing’ Bug to Dodge macOS Safeguards

LILY HAY NEWMAN

NFTs and AI Are Unsettling the Very Concept of History

RICK PRELINGER

A Clubhouse Bug Let People Lurk in Rooms Invisibly

LILY HAY NEWMAN


GET OUR NEWSLETTER
Enter your email
SUBMIT

Use of this site constitutes acceptance of our user agreement (effective 3/21/12) and privacy policy (effective 3/21/12). Affiliate link policy. Your California privacy rights. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Condé Nast.

CNMN Collection

In a sworn affidavit filed Jan. 31 with the Nova Scotia Supreme Court, Jennifer Robertson, identified as the widow of QuadrigaCX founder Gerald Cotten, said the exchange owes its customers roughly $250 million CAD ($190 million) in both cryptocurrency and fiat. The company previously announced it had filed for creditor protection on its website, but the filing itself provides greater details about its predicament.

As of Jan. 31, 2019, there were roughly 115,000 users with balances signed up on the exchange, with $70 million CAD in fiat and $180 million CAD in crypto owed overall, according to the filing.

The exchange holds roughly 26,500 bitcoin ($92.3 million USD), 11,000 bitcoin cash ($1.3 million), 11,000 bitcoin cash SV ($707,000), 35,000 bitcoin gold ($352,000), nearly 200,000 litecoin ($6.5 million) and about 430,000 ether ($46 million), totaling $147 million, according to the affidavit.

It was not clear what portion of the exchange’s crypto holding were kept in cold storage, versus its hot wallet. In the affidavit, Robertson explained that “only a minimal amount of coins” were stored in the hot wallet, but specifics were not provided.

Robertson added that:

“The normal procedure was that [QuadrigaCX founder and CEO Gerald Cotten] would move the majority of the coins to cold storage as a way to protect the coins from hacking or other virtual theft.”

She added that Cotten held “sole responsibility for handling the funds and coins,” and the remaining team members have had no luck accessing the exchange’s cold wallets since.

There is a possibility that some of Quadriga’s funds are being stored on other exchanges, though this has not been confirmed, she said.

Cotten reportedly died of Crohn’s disease in Jaipur, India in early December 2018. The exchange announced his death earlier this month. A death certificate was included in the list of exhibits.

In an affidavit filed in the Supreme Court of Nova Scotia last week, Jennifer Robertson, widow of QuadrigaCX CEO Gerry Cotten, wrote that the company owes its customers $190 million, but can’t access the funds to pay them back. In an unusual setup, Robertson said Cotten was the only person with the cryptographic keys to access $137 million of cryptocurrencies kept in “cold” storage to mitigate the risk of hacks. The remainder is similarly frozen, in cash, by ongoing disputes with a bank and payment processors. The six-year-old company is now seeking protection from its creditors as it attempts to access the lost funds. Robertson’s filing was first reported by Coindesk.

On Tuesday, a Halifax judge granted Quadriga a 30-day stay while it searches for the lost crypto, temporarily shielding the company from lawsuits by customers, some of whom reportedly own millions that are now stranded

TYYYYYYYYYYYYYJHDJHND

https://www.bbc.com/news/world-us-canada-47203706

I'm lost

As the value of bitcoin was rising and more people entrusted their money with QuadrigaCX

On Jan. 31, 2019, Canadian cryptocurrency exchange QuadrigaCX filed for protection in Nova Scotia under the Companies' Creditors Arrangement Act, which allows companies to restructure in order to avoid bankruptcy. According to reports, the company claims that it is unable to repay approximately $190 million owed to approximately 92,000 clients due to the recent alleged death of its founder, 30-year-old Gerald Cotten. Cotten allegedly was the only person who had the private keys needed to access approximately $147 million in cryptocurrency assets held on behalf of the company in off-line "cold storage" accounts. According to the company, Cotten died "due to complications with Crohn's disease on December 9, 2018 while travelling in India, where he was opening an orphanage to provide a home and safe refuge for children in need." A Cointelegraph article claimed that Cointelegraph had obtained a copy of Cotten's death certificate issued by the India Government of Rajasthan's Directorate of Economics and Statistics.