Canadian cryptocurrency exchange QuadrigaCX seeks creditor protection after founder's death


Police dispute claims more cryptocurrency taken from Christchurch company Cryptopia * Who stole the crypto from the crypto jar? That's a big problem for investors because the exchange's founder, who had encrypted access to the money, died a year ago.

Robertson, who is also his estate's executor, also announced that Quadriga has put new limits on daily withdrawals, trying to keep pace with demand and resolve transaction problems that lingered through much of previous year.

Long story short, through the use of in-depth blockchain analysis, Medication determined that QuadrigaCX never lost access to its Bitcoin holdings, along with the fact that that the BTC sum cited in the affidavit likely isn't accurate.

Users have been complaining about "withdrawal issues and a lack of communication" from QuadrigaCX for months, the publication reported.

Evidently Cotten was the sole person responsible for transferring QuadrigaCX funds between the company's "cold wallet" - secure, offline storage - and its "hot wallet" or online server, according to court documents.

In this scenario, it appears that the exchange's CEO was the only one with the passwords to the cold wallets.

Robertson says that while she has Cotten's laptop, it's encrypted and she does not have the password.

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The founder held "sole responsibility for handling the funds and coins" and no other members of the team could access the stored funds, she added.

"Despite repeated and diligent searches, I have not been able to find them written down anywhere", she said.

That has left Quadriga customers wondering when - and if - they'll see their money.

In seeking protection from creditors, Robertson said she had convened a board of directors to run the company.

Robertson has retained an expert to try to access the funds but he has so far not been able to do so.

When QuadrigaCX broke its silence a week later, the company revealed it had filed for creditor protection in the Nova Scotia Supreme Court, according to reporting from Coindesk. Other companies have already come forward to express interest, she said, warning that the platform's value would nearly certainly be undercut if the company faced a legal threat from its users.