A crypto exchange can't repay $260 million it owes customers because its CEO died with the only password

  • The Canadian crypto exchange QuadrigaCX reportedly owes its customers about $US190 million ($AU260 million) after its founder died suddenly last year, taking his encrypted access to the money with him.
  • QuadrigaCX’s founder and CEO, Gerald Cotten, died of complications from Crohn’s disease in December, CoinDesk reports.
  • Now customers are struggling to get access to their money, with the exchange looking at options to pay people back.

The Canadian cryptocurrency exchange QuadrigaCX owes its customers about $US190 million ($AU260 million), according to CoinDesk. That’s a big problem for investors because the exchange’s founder, who had encrypted access to the money, died last year.

“Quadriga’s inventory of cryptocurrency has become unavailable and some of it may be lost,” Jennifer Robertson, the widow of the exchange’s founder, Gerald Cotten, wrote after his reported death of complications from Crohn’s disease in December, as CoinDesk reported, citing a court filing.

Users have been complaining about “withdrawal issues and a lack of communication” from QuadrigaCX for months, CoinDesk said.

Robertson said the exchange’s new directors voted to “temporarily pause” the platform on January 26.

The exchange is considering selling off its operating platform to refund its users, and “multiple parties” are interested, CoinDesk said, citing the filing.

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