QuadrigaCX, the most important virtual currency trading platform in Canada, has $ 250 million of its customers – both in Canadian currency and in battles and other crypts – completely protected. The problem is that even the company itself does not have access to these funds, since its founder and CEO transferred the password to the grave. QuadrigaCX has until 7 March to resolve this issue. Otherwise, the demands will come as a storm droplet.
The Platform was created in 2014 by Gerald Cotten, a Canadian born 30 years ago in the province of Nova Scotia. On January 14, QuadrigaCX announced the surprise death of its founder and CEO on Facebook. "Gerry died of complications of Crohn's disease on December 9, 2018, when he traveled to India to open an orphanage to provide home and safety for children," the publication said.
On January 31, QuadrigaCX informed its clients that they filed a 30-day suspension request with the Halifax (New Scotland) court to settle financial problems. The company has already had liquidity problems at the beginning of 2018, when CIBC froze 26 million due to irregularities in some transfers. However, this was a discrete number compared to the one that was coming.
Jennifer KM Robertson, widow Geralda Cottna, stated in an affidavit before the court that the company could not access $ 250 million – in Canadian currency and in crypto currencies – belonging to 115,000 customers, since her husband was only a person who knows the password . According to Robertson's statement, Cotten feared hackers. For this reason, he deposited money in an electronic purse that was disconnected from the Internet and protected by a secret code. Robertson said that several experts tried to enter a laptop computer that was used by Cotten, as well as its mobile phone and USB encrypted device. However, efforts to find the password of an electronic bag were unsuccessful.
On 5 February, the judge acknowledged QuadrigaCX's request to suspend payments which will be unsuccessful on March 7, as the company shortened the deadline for accessing the e-wallet, either by searching for a password or finding a way to restart. Ernst & Young will be managing Cryptocurrency's finances during this time. "This suspension of payments enables us to work diligently in this process and thus try to ensure the profitability of our company," said QuadrigaCX on the day of the announcement of the judge's decision. However, company lawyers told the court that if the password can not be found, the platform can be sold to cover debts.
The special features of this history have been triggered by numerous speculations. One that sounds stronger is that Cotten escaped with the millions of dollars in the study. According to The Globe and Mail, the founder of QuadrigaCX wrote his message 12 days before his death, where he named his wife as the sole heir. Robertson, however, presented Cotten's death certificate. In addition, the Canadian Foreign Ministry CBC confirmed that one of its citizens died in India, although it did not provide further details due to the Guidelines on the Protection of Personal Data Act.
For now, QuadrigaCX is in the race against the calendar to find the key. It is not known whether the company will call famous hackers or broad-minded spiritualists in experiments. The Canadian media took advantage of this case that the authorities asked for more control over the purchase and sale of the cryptural.