$190M In Crypto Lost As Exchange Founder Dies With Only Password

$190M In Crypto Lost As Exchange Founder Dies With Only Password

According to his wife, Jennifer Robertson, no other members of the team could access the stored funds. It warned that customers might take legal action against Quadriga if the problem continues.

Meanwhile, a spokeswoman with Nova Scotia RCMP confirmed Tuesday they are assisting with an investigation into QuadrigaCX.

Users have very little recourse to recover those funds, said Christine Duhaime, a lawyer and founder of the Digital Finance Institute. Instead, third-party payment processors were used to receive and pay funds. ZeroNoncense performed a super detailed analysis of the exchange and has said that QuadrigaCX has been operating like a "Ponzi scheme for a long time now" and that the exchange was pretty much just paying back user withdrawals with other users' deposits.

It is thought that tens of millions of cryptocurrency is locked up in an offline storage facility. "There's a lot of moving parts to this".

Cryptocurrency exchanges such as QuadrigaCX operate as quasi-banks and have none of the safeguards of regular banks.

As for Cotten's computer, he said, significant resources have been employed to gain access to the machine's encrypted files.

The statement added: "Unfortunately, these efforts have not been successful".

At a court hearing on February 5 the company is seeking to appoint Ernst & Young as an independent monitor.

According to social media, Dhanani was convicted of fraud for operating an online marketplace for identity theft in the US, and was released in 2007.

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A customer uses a Quadriga Bitocin ATM. Cotten's widow said she had an expert try hacking into the founder's computers and encrypted email, but to no avail.

Kinsman said specialists will be tasked with ensuring Cotten's laptop is secure, and he confirmed that it will remain in a Toronto office.

Nearly everyone who was stung by QuadrigaCX believes Gerald Cotten is alive and well or that someone else has the keys and is trying to swipe the coins.

Before the platform was shut down, it had 363,000 registered users.

Quadriga does not have any corporate bank accounts.

"Quadriga's inventory of cryptocurrency has become unavailable and some of it may be lost", she added.

Access to Quadriga CX's digital "wallets" - an application that stores the keys to send and receive cryptocurrencies - appears to have been lost with the passing of Quadriga CX Chief Executive Officer Gerald Cotten, who died Dec 9 in India from complications of Crohn's disease.

They say about 115,000 Quadriga users hold balances in their personal accounts in the form of cash obligations and cryptocurrency.

"Quadriga was unable to access the cold wallets and/or discovered that the cold wallets contained minimal cryptocurrency units", the company said in court filings.

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