to connectVideoCrypto a boss that dies with a password is necessary to unlock the millions and millions of dollars from customer accounts
For the customers, Canadian cryptocurrency exchange has been reported to be not in a position to gain access to $190 million of funds, after the founder of the company died, the passwords that are required in order to gain access to the money.
As the controversy continues to swirl around the Canadian cryptocurrency exchange, QuadrigaCX, after the sudden death of its founder last year, where customers may not be able to gain access to the more than $160 million in funding.
Gerald Cotten, the 30-year-old founder of QuadrigaCX, who died in India on Oct. 9, 2018, as a result of complications arising from Crohn’s disease, according to a sworn affidavit by his wife. At the time of his death, Cotton was not the only person with the passwords to gain access to the money of the customers. In the turmoil following Cotton’s death, and QuadrigaCX, sought the protection of its creditors in Nova Scotia Supreme Court.
The bizarre situation has led to conspiracy theories around the question of whether Cotton is actually dead. However, a copy of the death certificate attached to the declaration filed by his wife, who was released earlier this year, CoinDesk.
THE DEATH OF ANIMALS, AND IN THE ABSENCE OF A $190 MILLION: THE STRANGE CASE OF CRYPTO-EXCHANGES QUADRIGACX
Cotton, the processing of the customer’s money prior to his death, is now firmly in the spotlight. In a recently released report by the court-appointed monitor, Ernst & Young, which is overseeing the bankruptcy proceedings, claiming that the Cotton is transferred out of the funds of the firm’s clients prior to his death.
“Mr. Cotton made in identified accounts in aliases, if it is proved that the non-eligible deposits, have been paid, and used it to trade on the platform, which results in inflated sales figures, the artificial transaction with the user, and, ultimately, the withdrawal of the cryptocurrency paid for by the users,” the report said. “Substantial resources have been delegated to Mr. Cotton the personal, and the other parties involved.”
The report notes that significant amounts of cryptocurrency being transferred to the “portfolio holder” in whose identity they have not been able to confirm it. Ernst & Young was not able to find any evidence of that in Quadriga to maintain a traditional book or record-keeping, since at least 2016.
With reference to the details of the coach-and-four from the database of the Ernst & Young reports that, at the time of its bankruptcy filing earlier this year, the company will owe 214.6 million Canadian dollars ($163 million) to its customers.
The first reports in the media indicate that the Quadriga is owed $190 million, but Ernst & Young says it has acquired a more fine-grained information about the company’s financial condition as a result of the bankruptcy proceedings, which was submitted to the Nova Scotia Supreme Court.
$190 MILLION IS GONE FOREVER? COMPUTER THE BOSS DIES, THE USE OF PASSWORDS IS REQUIRED IN ORDER TO UNLOCK ALL OF THE CUSTOMER’S ACCOUNTS
So far, 33 million Canadian dollars ($25 million) and amounts owed to customers have been found.
The report also provided some detail on those on the company’s computer.
“The Monitor can understand the passwords which were held by a single individual, Mr. Cotton, and it turns out that Quadriga has failed to ensure proper protection procedures were in place for the transfer of passwords and other vital operational data for any other coach-and-four representatives to a critical event is reached (such as the death of the key management personnel),” the report said.
It does not appear that the Quadriga had to be the right ones with regard to the protection of passwords, the report added. “The additional safeguards of options, including the use of a “dead-man’s switch’ which is critical to password at the time of death of a significant customer of the company. The Monitor has been advised that Mr. Cotton stated the family members, which he had founded, with a dead-man’s switch, to the time of his death,” Ernst & Young wrote. “The family members were expecting to receive an e-mail to be a critical Driving operational information at the time of Mr. Cotton’s death. Neither the Monitor, nor the other leaders in the organization are aware of and have a dead-man’s switch, you will receive e-mails.”
The QuadrigaCX the website redirects visitors to the www.quadrigacxtrustee.com that also gives you information about the company in the event of bankruptcy.
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