A Canadian cryptocurrency exchange mentioned it could not repay at least $250 million to consumers after its chief executive died all of a sudden whereas visiting India. The corporate, Quadriga CX, stated in court docket filings that the C.E.O., Gerald W. Cotten, was the one that knew the safety keys and passwords used to enter the funds. The Supreme Court of Nova Scotia on Tuesday approved the company’s request for defense in opposition to collectors for 30 days and the appointment of the accounting agency Ernst & Young to type out Quadriga’s funds and discover a potential sale.
The corporate’s lack of ability to return its consumers’ money has created an uproar amongst offended — and extremely suspicious — buyers. Mr. Cotten, a co-founder of the agency in 2013, died of problems from Crohn’s illness whereas touring to open an orphanage, the company said in an announcement posted to Fb on Jan. 14. The note stated that Mr. Cotten, 30, had died on Dec. 9.
In an affidavit, his widow, Jennifer K. M. Robertson, wrote that her husband used to run the enterprise from an encrypted laptop, working mainly out of their house in Fall River, Nova Scotia. Ms. Robertson didn’t know the password or restoration key and couldn’t discover them written down anywhere “regardless of repeated and diligent searches,” she wrote. Ms. Robertson mentioned she additionally employed an expert to seek out the cryptocurrency in “cold wallets” saved offline, with little success.