Monday , January 25 2021

Canada's largest cryptoverge lost $ 190 million forever



QuadrigaCX, the largest cryptocurrency exchange in Canada, has lost its customers' assets in the amount $ 190 million due to the loss of access to "cold storage" wallets due to the death of the founder of the site.

Jennifer Robertson, widow of the founder of QuadrigaCX, Gerald Kotten, gave January 31 affidavas to the Supreme Court of Nova Scotia. He said the exchange was due to C $ 250 million customers ($ 190 million equivalent) in both grip-clarity and fiat money.

By January 31, 115,000 registered users on the exchange, which owned 70 million Canadian dollars in fiat money and 180 million dollars of Canada in cryptocurrency, CoinDesk reports.

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There were 26.5,000 Bitcoin ($ 92.3 million), 11,000 Bitcoin Money ($ 1.3 million), 11,000 Bitcoin Cash SV ($ 707,000), 35,000 Bitcoin Gold ($ 352,000), 200,000 Litecoin ($ 6.5 million) and 430,000 Ethereum ($ 46 million) for a total of $ 147 million

Robertson explained that the "hot wallet" (quick access to assets – Ed.) Was "the minimum amount of coins" only, and all the assets were moved to the "cold wallet" (cryptocurrency storage on external media. – Ed.).

"The usual procedure for (CEO QuadrigaCX Gerald Cotten – Ed.) Move most of the coins to cool storage to protect the coins of burglary or other virtual stealing," he said.

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But in early December 2018, Cotten died of Crohn's disease (inflammatory bowel disease – Ed.) In Jaipur (India). The stock exchange announced his death in early January, but the main secret hid by customers.

The widow has now stated that Cotten had the only control or possession of information about the location of Quadriga assets in the "cold wallet", so at the time of his death the exchange lost access to all assets this and the rest of the team could not access the assets.

The widow said she had no business records of any husband for QuadrigaCX or her subsidiaries, but she has a Kotten laptop. However, the device was encrypted, and the widow did not have a password than a key to recovery. Despite the fact that an employer is employed to restore the contents of the laptop, he could not do so.

There were also problems with the return of cash balances by customer accounts, as Billerfy, the payment partner of a crypto exchange, could not find a new partner bank in legal conflicts with Imperial Imperial Canada Bank (CIBC). Sale of 30 million dollars in Canada, and three other services – 565,000 dollars of Canada.

The fifth paying partner of the WB21 name stores 9,000,000 dollars of Canada and $ 2.4 million (totaling $ 9.2 million) on behalf of Quadriga, but WB21 "refuses to give money or respond to Quadriga messages", because " it does not confirm the correct balance. " The US Securities and Exchange Commission are ready to prosecute WB21 USA Inc. and WB21 NA Inc, as well as connections related to fraud related fraud.

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Consumers have been complaining for several months about problems with withdrawing money and lack of communication with the QuadrigaCX team, and at the beginning this week worsens worsening when the site had closed all for maintenance and keeping. Robertson noted that the new directors of the exchange had voted for a temporary suspension of stage work on January 26 – the portal was blocked in the morning of the 28th.

The evidence was transferred to the court to suspend the case in order to prevent any new legal proceedings. "Pause" is necessary for Quadriga to search for lost assets. "Many swap clients, if not everyone, suffer further losses without stopping," said the widow.

To help consumers recover money, the exchange is considering selling its operating platform. Several parties have already turned to the exchange to learn about acquiring an action platform.

Robertson believes "the trading platform may have a significant value," but this value will be reduced if a legal case is filed against the exchange.

Quadriga hopes that the court will arrange a hearing on 5 February to confirm the suspension of cases, and also appoint E & Y as an independent third party to oversee its activities in the near future.


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