Company $262m In Hole Because Only Person With Password Died
A cryptocurrency exchange which owes hundreds of millions can’t access the cash because the only person with the password died.
According to his widow, founder of QuadrigaCX, Gerald Cotten held “sole responsibility for handling the funds and coins” for clients… and the only one with the password.
He apparently died due to complications with Crohn’s disease.
The company has two places where they keep the cash: “cold storage” and the “hot wallet”.
While they have access to the “hot wallet”, there’s not enough money in there to cover the $262 million clients are owed. That’s in “cold storage” - but they can’t bypass the encryption.
The normal procedure was that Cotton would move the coins to cold storage as a way to protect the coins from hacking or other virtual theft.
Social media has lit up over speculation over Cotten’s death, which some reckon was faked.