Crypto exchange in court: It owes $190m to netizens after founder dies without telling anyone vault passwords

www.theregister.co.uk | 2/5/2019 | Staff
Click For Photo: https://regmedia.co.uk/2017/01/09/shutterstock_vault_bank_door.jpg

A Canadian court today granted legal protections to a Great White North cryptocurrency exchange that is holding some $190m that can't be accessed – because its founder, the only person with the passwords to the digital vaults, died.

QuadrigaCX went to a Nova Scotia judge for temporary protection from potential creditors' lawsuits while it tries to figure out a way forward. Its founder and CEO Gerald Cotten passed away in India before Christmas without leaving any written record nor copies of the passwords and keys to unlock his organization's financial reserves.

Money - Cash - Drawer - Exchange - Funds

It is understood that save for some money in what is effectively a petty cash drawer, virtually all of the exchange's funds are locked up, meaning customers are unable to withdraw their dosh, practically speaking.

Some $137m in netizens' crypto-coins are held in a so-called cold storage offline wallet, the password for which only Cotten knew, it is claimed. Additionally, Cotten's password-protected computer must be unlocked to access bank accounts that held millions of bucks in normal currency, it is claimed. In total, QuadrigaCX reckons it is unable to get at around $190m in digital and real-world money owed to customers.

Tuesday - Nova - Scotia - Court - Exchange

On Tuesday, Nova Scotia's supreme court gave the exchange 30 days of protection from any legal action by creditors, according to an order shared by the business.

$24m in fun bux stolen from crypto-mogul. Now he fires off huge fraud charge. Like, RICO, say?

Weeks - Liquidity - Issues

"For the past weeks, we have worked extensively to address our liquidity issues, which include locating our very significant...
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