Millions of Quadriga Cryptos frozen following founder’s death

Galtero Lara
Febrero 10, 2019

Those using the now embattled cryptocurrency exchange QuadrigaCX won't be able to count on support from British Columbia's securities regulator, the British Columbia Securities Commission, as it wasn't regulated by the agency.

Exchanges where Quadriga CX had accounts, including Poloniex, Kraken and ShapeShift, were reportedly looking into the allegations.

[BCSC] does not now have any indication that Quadriga CX, the crypto asset trading platform, was trading in securities or derivatives or operated as a marketplace or exchange under British Columbia securities laws.

"As such, BCSC does not regulate it", said spokesman Brian Kladko, according to the report.

According to his widow, Cotten was the only one in the exchange who had access to the company's cold wallets, where the majority of the digital assets were stored.

The Canadian Securities Administrators, an umbrella organization for the country's provincial securities regulators, said no crypto-asset trading platform had "been regulated as a marketplace by Canadian securities regulators".

Those looking for recourse can not turn to the courts just yet.

Cryptocurrency exchange QuadrigaCX has recently been granted creditor protection by the Nova Scotia Supreme court judge Michael Wood - but questions are being asked whether the firm ever had the $145 million it owes its users?

Cotten, 30, was a Nova Scotia resident originally from Ontario.

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"I do not know the password or recovery key".

Two separate documents released previously - a statement of death issued from J.A. Snow Funeral Home and a death certificate issued from the Government of Rajasthan's Directorate of Economics and Statistics - also state that Cotten died on December 9, 2018 in Jaipur, the state capital of Rajasthan. Cotten's death certificate, issued by the Government of Rajasthan's Directorate of Economics and Statistics, has since surfaced. However, following the confirmation of Cottons death certificate this week, the Fortis Escorts hospital were Cotton passed away have now also released a statement.

Per the Times of India, Cotten was declared dead in the evening at 7.26 PM.

"Gerry died due to complications with Crohn's disease on December 9, 2018 while travelling in India, where he was opening an orphanage to provide a home and safe refuge for children in need", the post said.

As per the documents (a copy of which is with TOI ), Gerald Cotten was admitted on December 8, 2018.

They said he had complained of watery stools, vomiting, crampy abdominal pain, and was feeling feverish. Additionally, he was also feeling feverish. In the hours that followed doctors tried in vain to save him from a raging fever, septic shock and a perforated intestine. Cotten was in the company of Jennifer Kathleen Margaret Robertson, his wife, when he was admitted.

Despite the best efforts of the hospital, it is not certain that this will quell speculation regarding the Canadian crypto exchange. But new findings suggest that QuadrigaCX did not have a Bitcoin and Ethereum cold wallet.

Earlier past year, Quadriga was experiencing difficulties accessing CA$21.6m of its funds, when the Canadian Imperial Bank of Commerce (CIBC) froze five accounts belonging to the exchange's payment processor, Costodian Inc., and its owner, Jose Reyes.

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