28.8 C
Accra
Thursday, May 26, 2022
No menu items!

Cryptocurrency exchange founder's death locks $140m

Must Read

No major buildings sited on water ways, says AMA PRO Gilbert Ankrah 

By Rachel Kakraba The Accra Metropolitan Assembly, AMA, has given its backing to the directive by President Akufo-Addo for MMDAs...

Corruption Watch Ghana advocates review of Ghana’s Assert Declaration Law; Petitions SP to probe property of Sir John

By Rachel Kakraba Corruption Watch Ghana has called for a review of Ghana's Assert Declaration law, to make it more...

Parliament’s Privileges Committee refuse live media coverage of Absentee Hearings over privacy issues

Story by: Franklin ASARE-DONKOH The Absentee Members of Parliament who have been accused of breaching the 15-day absence rule are...

Canada’s largest cryptocurrency exchange is unable to access millions in digital currency following the sudden death of its founder.

Quadriga has filed for creditor protection and estimates that about C$180m ($137m; £105m) in cryptocurrency coins is missing.

It has not been able to locate or secure its cryptocurrency reserves since Gerald Cotten died in December.

Cotten, 30, had sole responsibility for handling the funds and coins.

In court documents filed with the Nova Scotia Supreme Court on 31 January, his widow Jennifer Robertson, says the laptop on which Cotten “carried out the companies’ business is encrypted and I do not know the password or recovery key”.

“Despite repeated and diligent searches, I have not been able to find them written down anywhere,” the affidavit states.

The company hired an investigator to see if any information could be retrieved but ongoing efforts have had only “limited success in recovering a few coins” and some information from Cotten’s computer and phone.

The company is also investigating whether some of the cryptocurrency could be secured on other exchanges, according to court files.

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

The company estimates it owes about C$250m ($190m; £145m) – including C$70m in hard currency.

The affidavit says the majority of the cryptocurrency was kept by Quadriga in a “cold wallet” or “cold storage”, which is located offline and used to secure cryptocurrency from hacking or theft.

Liquidity problems for the British Columbia-based company began in January 2018 when Canadian bank CIBC froze C$25.7m linked to its payment processor after the bank had difficulty determining who were the owners of the money.

Those problems have been compounded by Cotten’s passing.

The founder died unexpectedly due to complications with Crohn’s disease while travelling in India, according to court documents.

SourceBBC News

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

No major buildings sited on water ways, says AMA PRO Gilbert Ankrah 

By Rachel Kakraba The Accra Metropolitan Assembly, AMA, has given its backing to the directive by President Akufo-Addo for MMDAs...

Corruption Watch Ghana advocates review of Ghana’s Assert Declaration Law; Petitions SP to probe property of Sir John

By Rachel Kakraba Corruption Watch Ghana has called for a review of Ghana's Assert Declaration law, to make it more biting. According to Corruption Watch Ghana,...

Parliament’s Privileges Committee refuse live media coverage of Absentee Hearings over privacy issues

Story by: Franklin ASARE-DONKOH The Absentee Members of Parliament who have been accused of breaching the 15-day absence rule are expected to appear before the...

Beware of Lassa Fever- Ghana Health Service warns

The Ghana Health Service (GHS) has directed all healthcare facilities across the country to be on the alert for suspected cases of Lassa fever. It...

Nero X opens up on two-year break from music, bounces back with “Shame”

Ghanaian Highlife musician Nero X says his two-year break from music was a result of issues with his former management as well as other...

More Articles Like This