Canada’s biggest Bitcoin exchange will be in court on Tuesday to explain why $190 million in crypto could be forever lost after the death of its CEO.
Jennifer Robertson, the widow of QuadrigaCX CEO Gerald Cotten, says he was the only one with access to its clients’ crypto assets, according to an affidavit. Gerry was diagnosed with Crohn’s disease at the age of 24 and died on December 9th at the age of 30. The crypto is locked away in cold storage and the keys are stored on Cotten’s laptop, which security experts have been unable to access.
QuadrigaCX issued a statement to its clients saying it has filed an application for creditor protection. The company has a court date on February 5th.
An application for creditor protection in accordance with the Companies’ Creditors Arrangement Act (CCAA) was filed today in the Nova Scotia Supreme Court to allow us the opportunity to address the significant financial issues that have affected our ability to serve our customers. The Court is being asked at a preliminary hearing on Tuesday February 5 to appoint a monitor, Ernst & Young Inc., as an independent third party to oversee these proceedings.
For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts have not been successful. Further updates will be issued after the hearing.”
If QuadrigaCX is unable to recover the lost crypto, the company says it may sell the business in order to reimburse its customers. According to the affidavit, the company already has already received several buyout offers.