A Company Loses Dollars As CEO Die With Password - S Naziru Ahmad

quadrigacx cryptocurrency exchange exit scam
QuadrigaCX, the largest bitcoin exchange in Canada, has claimed to have lost CAD 190 million (nearly USD 145 million) worth of cryptocurrency after the exchange lost access to its cold (offline) storage wallets.

Reason? Unfortunately, the only person with access to the company’s offline wallet, founder of the cryptocurrency exchange, is dead.

Following the sudden death of Gerry Cotten, founder and chief executive officer QuadrigaCX, the Canadian exchange this week filed for legal protection from creditors in the Nova Scotia Supreme Court until it locates and secures access to the lost funds.

In a sworn affidavit filed by Cotten's widow Jennifer Robertson and obtained by Coindesk, Robertson said QuadrigaCX owes its customers some CAD 260 million (USD 198 Million) in both cryptocurrencies, including Bitcoin, Bitcoin Cash, Litecoin, and Ethereum, as well as fiat money.
However, Robertson said the cryptocurrency exchange only has smaller amount in a 'hot wallet' (USD 286,000), claiming that to protect its users funds from hackers, majority of coins were kept in a 'cold wallet'—a physical device that is not connected to the internet—by Cotten, who died of Crohn's disease on December 9 in Jaipur, India.
quadrigacx cryptocurrency exchange
According to the affidavit, the exchange's offline wallet holds roughly:

  • 26,500 Bitcoin (USD 92.3 million)
  • 11,000 Bitcoin Cash (USD 1.3 million)
  • 11,000 Bitcoin Cash SV (USD 707,000)
  • 35,000 Bitcoin Gold (USD 352,000)
  • 200,000 Litecoin (USD 6.5 million)
  • 430,000 Ether (USD 46 million)


Cotten was the only person who had the private keys to the wallet, according to Robertson, and no other members of the team, including herself, has the password to decrypt it.

"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, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts have not been successful," reads a message posted on the QuadrigaCX website, which is down.

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