Canada’s largest cryptocurrency exchange seeks stay of proceedings in Halifax court

QuadrigaCX News Canadian Apex Court Appoints Ernst & Young Inc. to Investigate Into the Lost Funds

QuadrigaCX News Canadian Apex Court Appoints Ernst & Young Inc. to Investigate Into the Lost Funds

Users' cryptocurrency wallets were kept offline, ensuring hackers couldn't get at them.

$190 million of cryptocurrency and traditional money have been inaccessible since the one person who knew the passwords died.

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 digital coins included bitcoin, litecoin and ether.

Speaking in court, where she filed for credit protection, Ms Robertson said she has her husband's laptop but she does not know the password.

Cotten's widow, Jennifer Robertson, said in the affidavit posted online that the laptop that Cotten used to run the currency exchange is encrypted. Unfortunately, these efforts have not been successful'.

QuadrigaCX also made headlines in October previous year after a Canadian banking cartel allegedly froze $28m of customers' funds.

Robertson also told the court she could not locate his passwords or business records for the company.

But the death certificate, issued by the Government of Rajasthan's Directorate of Economics and Statistics and obtained from a source involved in the events, indicates that Cotten died on December 9 - the same date given in a December 12 statement of death from a Halifax funeral home filed in the Nova Scotia court by his wife, Jennifer Robertson.

She also said that there have been threats made against her and 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".

Quadriga's problems accelerated when CEO Gerald Cotten died unexpectedly at the age of 30 from Crohn's disease while traveling in India on December 9.

As of the end of January, Quadriga had some 115,000 users with balances in their accounts, Robertson said. Cotten was the only person with the passcode to unlock the company's "cold wallet" leaving nearly all the exchange's cryptocurrency inaccessible. "Despite repeated and dilligent searches, I have not been able to find them written down anywhere". But she added that so far, the expert has had only limited success. You simply sign into the exchange, trusting that it will secure your funds.

He is also said to have been an advisor for Crypto Consortium and served as a Director of the Vancouver Bitcoin Co- Op.

However, Quadrigas access to cash has been “severely compromised” by its inability to negotiate bank drafts provided by the payment processors.

Xitong Zou and others are part of an informal committee of affected users that retained law firm Bennett Jones LLP and McInnes Cooper to represent them during the creditor protection proceedings.

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