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

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Virtual currency exchanges suffered at least five major attacks previous year.

The founder, CEO, and director of Quadriga Fintech Solutions Corp, Cotten had a Bachelor of Business Administration degree from the Schulich School of Business at York University.

His security measures and controls are understandable. The problem is those riches are now out of reach after the death of the exchanges founder — the only person known to have the password for the “cold wallet” storage.

He was married to Jennifer Robertson. According to her, her husband died suddenly in December 2018 during a trip to India. The company said he was planning to open an orphanage when he passed. The cause of the death of Cotton were complications of Crohn's disease, which was diagnosed at the age of 24.

This has led to agitations from some aggrieved customers of QuadrigaCX who fear they may not be able to withdraw their monies.

Now a more serious situation has occured in the cryptocurrency world with the exchange Quadriga.

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It will, however, all be of little comfort to the roughly 100,000 customers whose investments were lost because nobody at the exchange sought to obtain an copies of the CEO's access keys. At the time of his death, Cotten was the only person with the password to access the customers' funds. “If this situation continues, the users may seek legal proceedings against Quadriga which would only serve to complicate an already hard situation.”.

The Nova Scotia Supreme Court has granted Canadian cryptocurrency exchange QuadrigaCX temporary creditor protection by issuing a 30-day to prevent any lawsuits against the company from moving forward.

Making millions of easy money through Cryptocurrency has attracted attention from across the world before the governments chose to step in.

Ms Robertson added in the affidavit that she and her colleagues have had threats made against them from online cryptocurrency communities - especially from Reddit users.

Lawyers representing the Quadriga crypto exchange also indicated that the exchange may be sold and proceeds used to pay creditors. Experts brought in to try to hack into Cotten's other computers and mobile phone met with only "limited success" and attempts to circumvent an encrypted USB key have been foiled, his widow, who lives in a suburb of Halifax, said in the court filing.

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

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