Picture the frustration of being unable to access your cryptocurrency cache without any fault on your part; you wake up, attempt to log in, and discover that your access is blocked due to the sudden departure of the person responsible for it. That's the reality many QuadrigaCX clients now face.
Nearly $200 million in cryptocurrency funds are locked away Following the unexpected death of Quadriga CX's founder, Gerald 'Gerry' Cotton, aged 30, last December in India due to Crohn's disease, his widow, Jennifer Robertson, disclosed in a court statement that the exchange owes its clients roughly $190 million, locked away in its cold storage. Unfortunately, the encryption keys seem to have gone with him.
Robertson commented:
The cryptocurrency holdings of Quadriga have become inaccessible, and there is a possibility that a portion of it may be irretrievably lost.
The Trip to India
She also claimed that Cotton was in India Reports suggest that he had been engaged in charities like establishing an orphanage to provide shelter and safety for underprivileged children.
Noble as these efforts were, countless customers are left in financial limbo, questioning when or if they'll ever see their funds again. Simultaneously, this marks the second major setback for Quadriga clients following the Canadian Imperial Bank of Commerce's decision to freeze close to $30 million due to executives being unable to ascertain the true sources of these assets.
Slander & Death Threats
Robertson asserts that she had no involvement in QuadrigaCX's operations and that she has been the target of defamation and threats, expressing concern over the hurtful rumors on platforms like Reddit about the business, her husband's death, and the missing cryptocurrencies.
She mentions that although she has her late husband's laptop, she cannot gain access or view its contents. Her legal affidavit includes:
Gerry managed the company's operations using a laptop that remains encrypted. I don't know the password or the recovery key, and numerous thorough searches haven't revealed any clues.
Things Don’t Add Up
If Robertson's account holds true, it's deserving of empathy. Not only has she lost both a spouse and trusted companion, but she also faces the daunting challenge of navigating a business she likely had no prior involvement with, all while dealing with angry stakeholders.
Details about Quadriga's operations continue to be sparse. For instance, Robertson asserts relief efforts by engaging an 'expert' for fund retrieval, though unsuccessful so far. The specialist's credentials remain vague: encrypted code breaker? Professional hacker? Who's leading the charge?
A Subreddit Efforts have been launched to delve deeper into the mystery surrounding QuadrigaCX, and the more you delve, the more uncertainties arise.
Additional Problems
Post Cotton's demise, the exchange continued to accept deposits until January 26 when operations were suspended by its board of directors. Shortly after, by February 5, the company sought creditor protection from Nova Scotia's supreme court, in the wake of enduring trade delay issues.
The exchange is set for a court hearing later today Presently, executives are courting law firm Ernst & Young to conduct a thorough investigation.
An affidavit filed at the end As reported in January, Gerry's laptop harbors approximately $92 million in BTC, $1.3 million in BCH, $6.5 million in Litecoin, and $46 million in ether tokens.
