The Bitcoin Job; Investors May Lose $200m Following Password Holder's Death

Crypto-investors in a Canadian-based Exchange are in a Unique Predicament
By 
Coin Cloud Team
, published on 
March 28, 2019
The Bitcoin Job; Investors May Lose $200m Following Password Holder's Death

Gerald Cotton, CEO and Co-founder of QuadrigaCX, and the only person with the password for accounts valued at over $190 million, died unexpectedly. According to official documents, Cotton is said to have died of complications from Crohn’s disease on December 9, 2018, while traveling to India for a philanthropic mission.

His death left the company unable to access the bulk of its cryptocurrency funds, forcing his widow, Jenifer Robertson, to file a creditor protection case with the Supreme Court of Nova Scotia. According to the filing, Cotton had the only password to a digital purse containing Bitcoin deposited by 115,000 investors.

Ever since the Mt. Gox incident, the cryptocurrency market has become a popular arena for brute-force hackers, market manipulators and money launderers. So, as you might imagine, when news of the situation made its way into the public domain, conspiracy theorists got to work claiming that Cotton might be plotting to manipulate the market and getting away with it.

The firm's Facebook page has been filled with activity as speculation becomes the order of the day in the comment sections. Other discussions went on in Reddit, where Cotton's wife is a frequent commentator. In the court filings, she noted that she’s received threats and slanderous comments.

A significant amount of commentary on Reddit, Facebook, and other social platforms questioned the circumstances around Cotton’s death, and whether he actually was dead. However, Canada’s state department confirmed that Cotton did in fact die in India as reported.

Robertson was not involved in the business and was unable to open the laptop that may have contained the password. The laptop is encrypted, and no one knows the password or recovery key. Despite diligent searches, Robertson was unable to find the password written down anywhere.

Perhaps the firm needs to introduce a finder’s fee, to encourage people in the cryptosphere to come up with possible combinations for the account. Maybe even offer 1 LMB (Lambo) as prize money.

Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.

What is Coin Cloud?

Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.

Get $25 in FREE Bitcoin

When You Buy $150 or More at Any Coin Cloud DCM

Use promo code COINCLOUD at the machine

Enter your email for updates, promos, and more ...

You're in! We'll occasionally send opportunities to redeem digital currency to the email you provided. You can opt out at any time.
Hmm... Looks like something went wrong while submitting the form. Please try again.
Read our Promotion Terms of Service for offer details

Questions? Need Help?
Contact our 24/7 US-based Client Support team