QuadrigaCX the Canadian Cryptocurrency exchange firm has lost its investor’s $190 million of investment when the CEO of the company died untimely. The CEO of QuadrigaCX was the only person who knew the password of the vault that stored the millions of crypto deposits of the investors.
The firm presently filed for creditor protection in a court of Canada named Nova Scotia court, after following the untimely death of the CEO and founder Gerald Cotton. The case report’s filing is that the CEO of QuadrigaCX Mr.Cotten died with the password of the offline “cold storage” vaults that have the company’s investor’s digital currency. On February 5, 2019, the Nova Scotia court allowed bankruptcy protection under the rule CCAA (Companies’ Creditors Arrangement Act) and made Ernst and Young, the famous accountancy firm administrator to investigate the approachability for the funds to compensate around 115,000 investors of the cryptocurrency company.
The firm gave a statement about the case, “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 be transferred to us. Unfortunately, these efforts have not been successful.”
This case has raised stress among people who are already and who are planning to invest in digital currency. If no one can assess the password of QuadrigaCX’s cold wallet password, all that money worth of $190 million will be lost. Cryptocurrency doesn’t start with a good reputation, then it’s lost in past years and now this case doesn’t give people message and best assurance that cryptocurrency is safe to invest their money.
And this case of QuadrigaCX gives another cryptocurrency’s a caution alert to take necessary measures to keep their digital money and cold wallet secure and protected.