Gerald Cotten, 30, died in India from complications from from Crohn’s disease. He was the only person who knew the passwords to Quadriga’s digital wallets which contained $137.13 million worth of cryptocurrencies, shows court filings.
As a stop solution, Halifax judge Michael Wood has ordered a 30-day stay on filing claims against Quadriga, a Canadian cryptocurrency exchange, whose founder Gerald Cotten died in India.
As a result, the cryptocurrency platform lost access to millions of dollars since Cotten was the sole person who had knowledge of the company’s passwords.
Judge Michael Wood’s order grants the company a temporary reprieve from creditor lawsuits.
Ernst & Young has been appointed the company’s third-party monitor, to help manage Quadriga’s finances during the process.
Cotten, 30, died in December of complications from Crohn’s disease while in India, was the sole person with knowledge of the passwords to Quadriga’s digital wallets which contained $137.13 million (C$180 million) in cryptocurrencies, according to court filings.
“Despite repeated and diligent searches, I have not been able to find (the passwords) written down anywhere,” said Jennifer Robertson, his widow in an affidavit.
A court file indicates, Quadriga owes 115,000 users the equivalent of $190.46 million (C$250 million); the company also has $30 million in bank drafts, many of which it has had trouble depositing.
According to Maurice Chiasson, Quadriga’s lawyer, the company wants time to find the C$250 million it owes users. Court filings reveal that Quadriga is considering selling its platforms to cover its debts.
Incidentally, the wallet in question was “cold,” which means it was not connected to the internet so as to prevent hacking.
According to Cole Diamond, CEO of Toronto-based Coinsquare, it is unusual to hold a cold wallet under one signature.