"Cryptocurrency Exchange Says It Can't Access Millions After CEO Unexpectedly Died"
By Bill Chapell Feb 4, 2019
"The QuadrigaCX cryptocurrency exchange says it can't access some $190 million in bitcoin and other funds after its founder and CEO, Gerald Cotten, died at age 30 — without sharing the password for his encrypted laptop.
Cotten was "the sole officer and director" of the Canadian cryptocurrency exchange when he died, said his widow, Jennifer Robertson, in an affidavit that is part of the company's request for court assistance as it seeks protection from its creditors.
The debt filing comes weeks after Robertson announced that Cotten had died — an event she described as "a shock to all of us."
"Gerry died due to complications with Crohn's disease on December 9, 2018 while travelling in India," Robertson wrote, "where he was opening an orphanage to provide a home and safe refuge for children in need."
Robertson, who is executor of Cotten's estate, also announced that Quadriga has put new limits on daily withdrawals, trying to keep pace with demand and resolve transaction problems that lingered through much of last year.
In an update on its website about the debt filing, the exchange says it is facing "significant financial issues" that are keeping it from disbursing customers' funds.
The company says that it has "very significant cryptocurrency reserves" — but that it can't locate or secure those reserves."
read the rest of the story here: https://www.npr.org/2019/02/04/691296170/cryptocurrency-exchange-sa...
Who knows how much of the cryptomoney is locked out due to lost passwords. Everyone having any significant cryptoassets should have a way to pass the information to a trusted person in case of death. Even for the situation of your computer's hard drive breaking down... you should have another way to access the funds.
For sure a dead man's switch/key something.
The problem with digital currency is that one massive x class solar flare could potentially wipe out billions or worse.
Our grid and devices computers phones are not properly shielded for another Carrington type event.
You're right about the solar flare, but the same applies to the central bank issued debt/money too. Money itself is an illusion based on faith. The real material things will survive an EMP or a solar flare, but in the worst case we may be without an electric grid for good. And having your own electric power generator with enough fuel costs a lot.
And I was worried.
Zero Hedge: "Mystery Surrounding 'Lost' $150M Crypto Fortune Deepens As Analysts Question Exchange Founder's Death"
by Tyler Durden
"We were half-joking when we speculated last week that QuadrigaCX CEO Gerald Cotten - founder of a Canadian crypto exchange that has become embroiled in a $150 million fiasco after Cotten died and purportedly took the keys to the exchange's cold wallets to his grave, rendering his customers' coins immovable - faked his own death in a foreign land to abscond with a fortune belonging to his customers. But a Bloomberg report published Wednesday evening has raised red flags suggesting that this ludicrous "conspiracy theory" might soon become a "conspiracy fact."
But since Quadriga filed for bankruptcy protection last month in the face of a rash of lawsuits being filed by angry customers demanding their coins be returned, a group of analysts and crypto-sleuths have been trying to suss out whether the claims made by Quadriga and Cotten's widow - that the notoriously security-conscious (some might say paranoid) executive was the only employee who handled moving coins deposited with the exchange, and that he had recently shifted the bulk of the exchange's holdings into "cold storage" platforms to which only he possessed the encrypted key, which they have been unable to locate - hold water.
And as it turns out, there has been some suspicious activity that, at first brush, would seem to call these claims into question. As one Cornell professor who spoke with BBG claimed, Quadriga's story didn't pass "the smell test." If the coins were truly frozen, then why hadn't the exchange at least furnished the public keys that would allow auditors to verify their holdings on the blockchain?"
read the rest at Zero Hedge: https://www.zerohedge.com/news/2019-02-06/mystery-surrounding-lost-...
Sounds plausible. If you can be corrupted 150 million would do it.
Massive die-offs atm.