[2019-04-13] Quadriga Fails to Find $195 Million in Missing Bitcoin, Ethereum an

[cybersofts]

Quadriga Fails to Find $195 Million in Missing Bitcoin, Ethereum and Crypto Assets, Court Approves Bankruptcy Proceedings

QuadrigaCX, the embattled Canadian cryptocurrency exchange, has failed to locate millions in customers’ missing cryptocurrency assets since the company’s owner died suddenly in December of 2018. On Monday, Nova Scotia Supreme Court Judge Michael Wood ruled that Quadriga Fintech Solutions Corp, the holding company, can begin bankruptcy proceedings.

Roughly 115,000 customers are owed $195 million ($260 million Canadian dollars) in cash and cryptocurrencies, including Bitcoin and Ethereum, following the death of Quadriga’s founder Gerald Cotton. The exchange says Cotton, who died in India following complications from Crohn’s disease, did not reveal to anyone in his organization the private keys that access the cryptocurrencies on his laptop computer.

Quadriga’s court-appointed auditor Ernst & Young issued an April 1 report, asserting that creditors may benefit from the bankruptcy proceedings with the potential sale of the company’s assets, including but not limited to Quadriga’s operating platform.

In March, Michael Wood granted the Canadian crypto exchange a 45-day extension to find more than $100 million in lost Bitcoin, Ethereum, Bitcoin Cash, Bitcoin SV and Bitcoin Gold.

The court also approved a freeze on accounts held by Cotton’s widow, Jennifer Robertson, and the Cotten estate, including Robertson’s trusts and businesses.

Robertson says that her husband’s death was “sudden and unexpected”, refuting conspiracy theories that Cotten is still alive and that his death was a ruse to escape financial troubles.

QuadrigaCX was believed to be Canada’s largest cryptocurrency exchange, but following the death of Cotten, Ernst & Young says the company’s cold storage wallets are empty.

The next hearing is scheduled for April 18 to address issues involving credit protection and third-party payments processors.


Reference: https://dailyhodl.com/2019/04/09/quadriga-fails-to-find-195-million-in-missing-bitcoin-ethereum-and-crypto-assets-court-approves-bankruptcy-proceedings/

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[carlfebz2]

After all these months this QuadrigaCX incident didnt really being solved out.I do really believed that this wont really be simple.Its just right for His wife's account to be freezed yet it cant really be avoided for people
or everyone to get suspicious about her and with his husbands sudden death.Chances of retrieval is becoming lit as the day pass by and this is the sad reality on crypto security if once private keys wont be known then you cant possibly access those funds no matter how hard you try.

[coolcoinz]

After all these months this QuadrigaCX incident didnt really being solved out.I do really believed that this wont really be simple. Its just right for His wife's account to be freezed yet it cant really be avoided for people
or everyone to get suspicious about her and with his husbands sudden death[/b].Chances of retrieval is becoming lit as the day pass by and this is the sad reality on crypto security if once private keys wont be known then you cant possibly access those funds no matter how hard you try.

It's not being solved because they aren't cooperating. The staff had no access to the funds and it was all supposedly held by the CEO but somehow the money were being withdrawn before he died and after he died. That doesn't add up! The wife can be innocent or not, but some of the money being withdrawn by her after his death is really damning and nobody seems to know anything. Crypto security is fine and this example proves it. He had full control and nobody can access the money now, because this is how secure bitcoin is!

[joniboini]

What a sad story for their users. Even more shocking when they didn't have anything on their cold storage. Basically, they just went insolvent right before their owner died. If the owner moved all the money and then stay silent about, of course, it was a shitshow then.

I don't buy this can't be found etc story, they really have bad management and it should be understandable if they fucked up like this. Hopefully, their users can get something in return.

It's not being solved because they aren't cooperating. The staff had no access to the funds and it was all supposedly held by the CEO but somehow the money were being withdrawn before he died and after he died. That doesn't add up! The wife can be innocent or not, but some of the money being withdrawn by her after his death is really damning and nobody seems to know anything.

How do you know the money was withdrawn by her? Last time I checked there's no movement from the address and there's no proof that the wife holds control of the address.

[Naida_BR]

I am not suprised by this news.
Quadriga was a "open - ended" situation and after all these assumptions with the CEO's death it was close to be said that they are bankrupt.
All the close colleagues of the CEO should go to jail in my opinion. They handled and lost- stole millions of money.

[Lanatsa]

I don't buy this can't be found etc story, they really have bad management and it should be understandable if they fucked up like this. Hopefully, their users can get something in return.

Who would be the one to give out some returns? No one will surely compensate into its users.

I am not suprised by this news.
Quadriga was a "open - ended" situation and after all these assumptions with the CEO's death it was close to be said that they are bankrupt.
All the close colleagues of the CEO should go to jail in my opinion. They handled and lost- stole millions of money.

Not a valid thing yet there would be no evidence tying up all those close people to the CEO.Yes,they handled those money but they dont have access on it anymore.
I doubt that there's someone held those keys before the CEO died.Its impossible for him to keep it and bringing to his grave unless if he do have 0% conscience to the users who would lost up money.

[Vishnu.Reang]

Again another exchange bringing bad name to Bitcoin. Five years ago, Mt Gox was robbed and some $600 million worth of coins were stolen. Till this date, none of those coins have been recovered. And now we have another $200 million robbery in Quadriga. The Crypto market has become a refuge for all the con-men and scammers. The only precaution we can take is to avoid using exchanges to store our hard earned coins.

[Theb]

The court also approved a freeze on accounts held by Cotton’s widow, Jennifer Robertson, and the Cotten estate, including Robertson’s trusts and businesses.

The news article made Cotten's wife look like she was a victim of their judicial system by creating this sentence without saying why they had to freeze all their assets, they cannot even spell his surname right. The reason why they have freeze all of here assets is because Jennifer Robertson together with Gerald Cotten have bought a dozen properties since 2016 some of which are bought under a different surname for Jennifer. For the judge's point of view this alone is enough to warrant a suspicion on their strange activity involving his wife.

[dunfida]

The court also approved a freeze on accounts held by Cotton’s widow, Jennifer Robertson, and the Cotten estate, including Robertson’s trusts and businesses.

The news article made Cotten's wife look like she was a victim of their judicial system by creating this sentence without saying why they had to freeze all their assets, they cannot even spell his surname right. The reason why they have freeze all of here assets is because Jennifer Robertson together with Gerald Cotten have bought a dozen properties since 2016 some of which are bought under a different surname for Jennifer. For the judge's point of view this alone is enough to warrant a suspicion on their strange activity involving his wife.

1-2 properties is understandable but talking about dozens? then it is already a different story and whats make it even more worst its that it have been named to other person which really adds up the suspicion.
The question on my mind is,if these funds being used on buying those properties then it would be obviously be tracked out on these big spendings if it do deducted on one of the addresses where this exchange own.