$190M In Crypto Lost As Exchange Founder Dies With Only Password

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At the same time, the only permanent employee of Quadriga was its founder, Gerald Cotton.

His security measures are understandable. She also said Cohen did not leave behind any business records. He reportedly died in India in December, Coindesk.com reported. The company said he was planning to open an orphanage when he passed. QuadrigaCX didn't announce the death until more than a month later out of fear it would prompt users to withdraw their crypto, and indeed that's what happened.

The countrys largest cryptocurrency exchange, QuadrigaCX, owes its customers about $190 million in cryptocurrency and cash. The funds were later unblocked, but Quadriga still can not get them because of the reluctance of Canadian banks to work with crypto exchanges. Making matters worse, many QuadrigaCX customers continued to make automatic transfers into the service following Cotten's death.

He is also said to have been an advisor for Crypto Consortium and served as a Director of the Vancouver Bitcoin Co- Op. In December, it was estimated the total obligations of Quadriga to its affected users was about $190 million.

The company said that as of the end of January, about 115,000 users had a collective $137 million in cryptocurrency - most in bitcoin - balances with Quadriga and $53 million in government currency. All of those cold wallet private keys are lost.

A number of web-based conspiracies have been speculated on forums such as Reddit about the locked up cryptocurrency, and Robertson claims she has received a number of threats since Cotten's death.

"I sent you emails, you are not responding", she said, Sky reported. This, and Cotton's laptop, are so heavily encrypted that not even master hackers have been able to crack it so far.

Quadriga CX holds around 26,500 bitcoin ($92.3 million USD), 11,000 bitcoin cash ($1.3 million), 11,000 bitcoin cash SV ($707,000), 35,000 bitcoin gold ($352,000), almost 200,000 litecoin ($6.5 million) and about 430,000 ether ($46 million), which totals to $147 million.

It gets worse, as according to an affidavit, QuadrigaCX has claimed to have assets of $91 million in bitcoin, almost $50 million in Ether, and other cryptocurrencies. She did not rule out that for the sake of this to sell crypto exchange.

"Quadriga's inventory of cryptocurrency has become unavailable and some of it may be lost", Robertson wrote in the filing.