Canadian exchange lost millions of funds

quadrigacx

One of the biggest Canadian cryptocurrency exchanges – QuadrigaCX, is has lost access to millions of its funds after the death of its CEO.

The 30-year-old CEO, Gerald Cotten died of complications arising from Crohn’s Disease while traveling in India for opening an orphanage providing a home and safe refuge for children in need.

After its CEO’s unexpected death QuadrigaCX announced that it is unable to access Bitcoin and other digital assets worth of $145 millions.

For security purposes many of the digital assets were stored in cold wallets – offline storage usually used for storing cryptocurrency deposits protecting them from hacker attacks and other digital threats. The virtual keys necessary to access the cold wallets were solely held by Cotten and he was the only person responsible for cold to hot wallet transactions.

According to the filings, QuadrigaCX currently has only $375,000 in cash and approximately $260 million worth of dept to around 92,000 customers.

Cotten’s death resulted in QuadrigaCX being plunged into crisis and struggling how to refund its users.

On Thursday the company filed for creditor protection in the Nova Scotia Supreme Court.