QuadrigaCX, Canada’s largest crypto exchange, has frozen ~$137 million in cryptocurrencies after Gerald Cotten, QuadrigaCX’s founder, passed away at age 30 from Crohn’s disease complications.
Quadriga, which facilitates the trading of multiple cryptocurrencies, including Bitcoin, Etheteum and Litecoin, filed with the Nova Scotia Supreme Court for creditor protection just last week. It granted a stay of proceedings today.
In total, Quadriga owes C$250 million to 115,000 of it’s users, according to an affidavit filed by Cotten’s widow, Jennifer Robertson.
“Despite repeated and diligent searches, I have not been able to find (the password or recovery key) written down anywhere,” Robertson said. Per the affidavit, the cryptocurrencies are held in a cold wallet on Cotten’s computer, accessible only physically with a password.
Tragic, indeed, as a family has lost a son and husband, and many QuadrigaCX users may have lost their cryptocurrency holdings forever.
There are some who are claiming an exit scam, Cotten faking his own death to run off with the $137 million. Especially given the company’s history of legal troubles.
Either way, it’s a sad story, truly, and why we at Crypto Mouse advocate for our dear readers to ALWAYS hold their crypto in their own, cold storage wallets.