Judge pauses lawsuits against cryptocurrency company Quadriga

Judge pauses lawsuits against cryptocurrency company Quadriga

Judge pauses lawsuits against cryptocurrency company Quadriga

Quadriga was a platform that allowed customers to buy and sell cryptocurrencies, with accounts being credited either by the depositing of cash or cryptocurrency.

A cryptocurrency platform that lost access to millions of dollars when its founder died with sole knowledge of company passwords has been granted a temporary reprieve from creditor lawsuits.

Cotten died in India at age 30 from complications with Crohn's disease. Only after the company unlocks the system and moves Bitcoins out of cold storage and into a less secure "hot wallet" on the exchange are users able to spend, trade, withdraw, or transfer their Bitcoins.

Ms Robertson said she was not involved in Mr Cotten's business while he was alive and did not know the password or recovery key.

In a case reminiscent of the MMM saga, Canada's leading cryptocurrency exchange company has said it can not immediately repay customers' $190m because its founder died with their passwords.

The court has also announced it has appointed financial company Ernst & Young as an independent third party monitor to the court's administration. Unfortunately, these efforts have not been successful'.

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But they did talk about the company around the founder's death, stories about QuadrigaCX were shared around December 9, the death of Cotten in India due to Crohn's Disease.

The founder of Canadian crypto exchange QuadrigaCX took security seriously.

Court filings show that after his death, QuadrigaCX employees have been unable to locate or access cryptocurrencies.

At the end of January, 115,000 of the 363,000 registered users on the Quadriga database held balances at the exchange. "Despite repeated and diligent searches, I have not been able to find them written down anywhere".

An expert is assisting in attempts to recover the information, but so far with limited success. His widow has signed an affidavit to confirm that the cryptocurrency is owed to customers, but that neither she nor anyone else has the necessary codes to access the cold-stored cash.

"Gerry ran the business through his laptop, mostly at our home, but also wherever he happened to be", she wrote, saying home was mostly Fall River, a suburban community outside Halifax. ZeroNoncense performed a super detailed analysis of the exchange and has said that QuadrigaCX has been operating like a "Ponzi scheme for a long time now" and that the exchange was pretty much just paying back user withdrawals with other users' deposits. Robertson said the many types of deposits made it hard for the company to stop the inflow of money - even as it lost its ability to access or disburse funds.

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