- A digital-asset exchange, Quadriga CX, has been thrown into confusion following the death of its CEO who died holding passkey to millions in customers' coin
- The online startup has been left in confusion as it was unable to retrieve about C$190 million of customers' money
- Reports said experts brought in to try and hack into Cotten’s other computers and mobile phone met with only limited success
More troubles are brewing for a digital-asset exchange, Quadriga CX, following the death of its chief executive officer, Gerald Cotten, who has access to the only passkey that can unlock not less than $200 million in customers' coins.
Bloomberg reports that the online startup has been left in dilemma and tragedy as it was unable to retrieve about C$190 million, which is approximately $145 million in Bitcoin, Litecoin, Ether and other digital tokens held for its customers.
Legit.ng gathers that following the death of the crypto CEO, Gerald Cotten, the only access to Quadriga CX’s digital “wallets” -an application used to store the keys that sends and receives crypto currencies, appeared to have been lost.
Cotten, 30, was reported dead in December 9, 2018, in India following series of complications from Crohn’s disease.
According to reports, an affidavit from Cotten widow, Jennifer Robertson, revealed that the deceased CEO was always conscious about security.
The affidavit added that the laptop, email addresses and messaging system he used to run the 5-year-old business were encrypted, with sources saying he was the sole person responsible for the handling of funds and coins and the banking and accounting side of the business.
It was also reported that late Cotten's security measures are understandable, with his window, Robertson admitting that she couldn't find his passwords or any business records for the company.
Experts brought in to try to hack into Cotten’s other computers and mobile phone met with limited success
Robertson reportedly said in the course of investigation: "After Gerry’s death, Quadriga’s inventory of cryptocurrency has become unavailable and some of it may be lost."
In the wake of legal pressure, the company had prayed to Nova Scotia court to grant it creditor protection while it addressed significant financial issues created by its CEO's demise.
Part of the statement said: “For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts have not been successful."
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Meanwhile, Legit.ng previously reported that Sergey Mavrodi, the founder of MMM, a Russian company that perpetrated one of the world's largest Ponzi schemes of all time, passed away. According to a report by Moskovsky Komsomolets, the founder of the MMM series of financial pyramid schemes, Mavrodi, died in Moscow at the age of 62.
Legit.ng gathered that Mavrodi was taken to a city hospital from a bus stop overnight Monday, March 26, after he felt weakness and pain in the chest area. The preliminary cause of death is a heart attack.
Recall that many Nigerians lost millions to the scheme in 2016, after it announced the freezing of all members accounts.
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