QuadrigaCX Owes Customers $190 Million, Court Filing Shows

[boss.afro]

Troubled Canadian crypto exchange QuadrigaCX owes its customers $190 million and cannot access most of the funds, according to a court filing obtained by CoinDesk.

In a sworn affidavit filed Jan. 31 with the Nova Scotia Supreme Court, Jennifer Robertson, identified as the widow of QuadrigaCX founder Gerald Cotten, said the exchange owes its customers roughly $250 million CAD ($190 million) in both cryptocurrency and fiat. The company previously announced it had filed for creditor protection on its website, but the filing itself provides greater details about its predicament.

As of Jan. 31, 2019, there were roughly 115,000 users with balances signed up on the exchange, with $70 million CAD in fiat and $180 million CAD in crypto owed overall, according to the filing.

The exchange holds roughly 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), nearly 200,000 litecoin ($6.5 million) and about 430,000 ether ($46 million), totaling $147 million, according to the affidavit.

It was not clear what portion of the exchange’s crypto holding were kept in cold storage, versus its hot wallet. In the affidavit, Robertson explained that “only a minimal amount of coins” were stored in the hot wallet, but specifics were not provided.

the full article can be found here https://www.coindesk.com/quadriga-creditor-protection-filing

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[Philopolymath]

Fucking lying cocksuckers STOLE MY COINS

[stompix]

There is no week in the crypto world you won't read something that will make you shout "You can't make this*** up"

So, the guy that owned quadriga held all control over the coins there?
He dies and 25 000 BTC and some shitcoins are locked forever?

I imagine his relatives trashing his house searching for the keys ...

But...there is more...
He died of Crohn's disease while in India...
Hollywood, do you read this???

[BitBustah]

There is no week in the crypto world you won't read something that will make you shout "You can't make this*** up"

So, the guy that owned quadriga held all control over the coins there?
He dies and 25 000 BTC and some shitcoins are locked forever?

I imagine his relatives trashing his house searching for the keys ...

But...there is more...
He died of Crohn's disease while in India...
Hollywood, do you read this???

Probably a fake death or someone else has the coins.  There is no way those coins are just lost.

Another scammy inside job, at this point I wouldn't even be surprised if Binance or Coinbase tries to exit scam with billions of dollars.

[yusupjatigumilar]

I think it is impossible if a company engaged in the exchange of crypto currencies for wallet passwords is only known by one person, if indeed this means that the company is unprofessional does not think ahead and only has a short-term view, this will only making the reputation of the crypto currency even more threatening because investor confidence faded by this, this incident is very detrimental to many people.

[dothebeats]

There is no week in the crypto world you won't read something that will make you shout "You can't make this*** up"

So, the guy that owned quadriga held all control over the coins there?
He dies and 25 000 BTC and some shitcoins are locked forever?

I imagine his relatives trashing his house searching for the keys ...

But...there is more...
He died of Crohn's disease while in India...
Hollywood, do you read this???

Can pretty much make up for a good movie about deception and human stupidity cramped up in a single Hollywood film. Kidding aside, this is a next-level exit scam strategy if you ask me, and would likely not end if the owner really died. What's questionable though is how things are arranged perfectly right before his death. Is he anticipating his own death right before it comes? Because if he did, it's absolutely strange.

[stompix]

Well, I don't believe this one is an exit scam or that others will follow this script.

It's too damn complicated and easy to get caught, since if you insist the keys are only known by the deceased the moment those funds move .....zombies

In his case, taking into consideration the keys were held on a laptop (!?), he could have easily fake a robbery, at least with a robbery there is no body, no DNA test, no officials to bribe, just invent a story or hire a wannabe robber and that's all.
Besides, he has to forget about his family, he has to come up with a new identity, mix coins after coins avoiding KYC all this living in some far away country, and this is the way of doing when you're a mafioso, amateurs will always end up badly.

But again...I won't be that surprised to read in a few years he got caught in Costa Rica or a country that has no extradition treaties with Canada.

[romero121]

The death seems to be a myth, because there has never been any image portraying his death. Another thing he only has got the private keys for a large volume of funds. Some describe it as a planned murder, while few describe him to be a honest person who works hard and wish to support the one in need. So, at any point he never intend to scam the users. Let's wait to see the truth coming out.

[Saydia]

The year began very disturbingly. I sympathize with the victims.

[Baofeng]

I don't believed it, this guy is as fraud as you can get. I think he carefully laid out the plans of his exit scam and it's possible that there's no hot wallet or any wallet whatsoever by that exchanges. He just shifting funds around specially if someone is withdrawing it. So before this blow out of epic proportions, he suddenly died together with the supposedly keys.

[avikz]

The matter is far more complicated that we can think of. He died while in India and it is said that he was suffering from some chronic stomach disease. However, everything looked normal till I stumbled upon the below news,

https://www.scmp.com/tech/blockchain/article/2185120/quadriga-cryptocurrency-exchange-founder-filed-will-12-days-he-died

It seems like Gerald Cotten filed his will 12 days before he died. Something certainly smelling fishy and looked very much like a big and well planned exit scam!

[fasdorcas]

Seriously its both incredibly sad and also upsetting. First of all when you are running a company at that size then the cold storage should be under just one persons name, there is no possibility of anything going right in that scenario and I understand the need to keep them all safe however when you over do the security portion of something like this that much in the end when one person dies everything goes to waste as we can see.

However, at the same time we are talking about a person who lost their husband and instead of allowed to mourn her husbands death we see them getting as much as death threats because husband died without a chance to even say goodbye. What should do widow do ? Unless this is some plan to get all money to themselves and he is actually not dead (very slim chance) she is not responsible for the actions of her husband.

[Crypdon]

It is hard to fathom how no one had any idea what the public address is and if it's a hot or cold storage wallet. This all smells like a scam with funds being sent to decentralised exchanges as we type

[usorin]

There is no week in the crypto world you won't read something that will make you shout "You can't make this*** up"

So, the guy that owned quadriga held all control over the coins there?
He dies and 25 000 BTC and some shitcoins are locked forever?

I imagine his relatives trashing his house searching for the keys ...

But...there is more...
He died of Crohn's disease while in India...
Hollywood, do you read this???

Probably a fake death or someone else has the coins.  There is no way those coins are just lost.

Another scammy inside job, at this point I wouldn't even be surprised if Binance or Coinbase tries to exit scam with billions of dollars.

i wonder how can you fake your death when the justice court in a democratic country is involved?

[Renaldi blackspadeteam]

this certainly makes customers panic, good exchanges always think of the satisfaction of their customers, but this exchange has taken the customer's money, if the customer's funds are held up I think the customers trade with leaves, is this a joke, oh no, the exchange must immediately return customer funds, I honestly want to know why exchanges need that much money? and why the funds were saved in storage.

[Zadicar]

The matter is far more complicated that we can think of. He died while in India and it is said that he was suffering from some chronic stomach disease. However, everything looked normal till I stumbled upon the below news,

https://www.scmp.com/tech/blockchain/article/2185120/quadriga-cryptocurrency-exchange-founder-filed-will-12-days-he-died

It seems like Gerald Cotten filed his will 12 days before he died. Something certainly smelling fishy and looked very much like a big and well planned exit scam!

I smell a well-planned execution or something hmmm.. But the problem of this other guy is the key to the funds but what if he knows it already. This is so complicated to think of what would be the real reason or the real event that causes this. But one thing is for sure, they/he may have planned it already to look like this.

[n0ne]

The matter is far more complicated that we can think of. He died while in India and it is said that he was suffering from some chronic stomach disease. However, everything looked normal till I stumbled upon the below news,

https://www.scmp.com/tech/blockchain/article/2185120/quadriga-cryptocurrency-exchange-founder-filed-will-12-days-he-died

It seems like Gerald Cotten filed his will 12 days before he died. Something certainly smelling fishy and looked very much like a big and well planned exit scam!

I smell a well-planned execution or something hmmm.. But the problem of this other guy is the key to the funds but what if he knows it already. This is so complicated to think of what would be the real reason or the real event that causes this. But one thing is for sure, they/he may have planned it already to look like this.

If that is a well planned execution the court judge too has got relation with it. Court has provided with the detailed report of the holdings, but in a first world country I don't finds court will. As perfect investigation from the respective authorities under the order from the court will get to know the truth. From my view we don't know what happens by the next minute. In such a way his life has ended leading to massive freezing of crypto and fiat.

[alisafidel58]

The matter is far more complicated that we can think of. He died while in India and it is said that he was suffering from some chronic stomach disease. However, everything looked normal till I stumbled upon the below news,

https://www.scmp.com/tech/blockchain/article/2185120/quadriga-cryptocurrency-exchange-founder-filed-will-12-days-he-died

It seems like Gerald Cotten filed his will 12 days before he died. Something certainly smelling fishy and looked very much like a big and well planned exit scam!

I smell a well-planned execution or something hmmm.. But the problem of this other guy is the key to the funds but what if he knows it already. This is so complicated to think of what would be the real reason or the real event that causes this. But one thing is for sure, they/he may have planned it already to look like this.

If that is a well planned execution the court judge too has got relation with it. Court has provided with the detailed report of the holdings, but in a first world country I don't finds court will. As perfect investigation from the respective authorities under the order from the court will get to know the truth. From my view we don't know what happens by the next minute. In such a way his life has ended leading to massive freezing of crypto and fiat.

If it is planned then the court could just make a decision holding his last will and testament to hold each fund that may be distributed among his family members. A thorough investigation will come up here before anybody can get money from his will.

[Zadicar]

The matter is far more complicated that we can think of. He died while in India and it is said that he was suffering from some chronic stomach disease. However, everything looked normal till I stumbled upon the below news,

https://www.scmp.com/tech/blockchain/article/2185120/quadriga-cryptocurrency-exchange-founder-filed-will-12-days-he-died

It seems like Gerald Cotten filed his will 12 days before he died. Something certainly smelling fishy and looked very much like a big and well planned exit scam!

I smell a well-planned execution or something hmmm.. But the problem of this other guy is the key to the funds but what if he knows it already. This is so complicated to think of what would be the real reason or the real event that causes this. But one thing is for sure, they/he may have planned it already to look like this.

If that is a well planned execution the court judge too has got relation with it. Court has provided with the detailed report of the holdings, but in a first world country I don't finds court will. As perfect investigation from the respective authorities under the order from the court will get to know the truth. From my view we don't know what happens by the next minute. In such a way his life has ended leading to massive freezing of crypto and fiat.

If it is planned then the court could just make a decision holding his last will and testament to hold each fund that may be distributed among his family members. A thorough investigation will come up here before anybody can get money from his will.

The family do have the full rights to get or inherit such thing yet its been stated on the will but if funds inside it would involve millions of dollars then i dont see a reason that it would be completely
granted yet we can already conclude that those funds came from exchange investors.

[vlad230]

By time they get access to the coins - if ever - the coins will be worthless so, just plain bad luck for the customers if you ask me.