Last month , Canadian cryptocurrency exchange QuadrigaCX found itself in an unusual billet , even by the monetary standard of this outlaw , scam - happy industry : The only soul with the passwords to the exchange ’s trove of cold storage fundsallegedly died , exact admission to customers ’ money to the grave with him . Now it seems many of the digital wallets key out as potentially bear those funds are entirely empty .
While QCX ’s day - to - day transfers were wield via a hot wallet , supposedly the lion ’s share were stored in offline “ cold ” pocketbook ( reckon check vs. savings account statement ) that are not quite as easy to cut . Gerald Cotten , 30 , was the only person with the watchword to open up these wallets before he was report to have died “ due to complication with Crohn ’s disease ” in India “ where he was open an orphanhood to provide a home and safe refuge for children in pauperization , ” according to apostQCX made on Facebook over a calendar month after the fact .
Ernst & Young , which is tax with auditing QCX , found a few wrinkles while strain through wallets associated with the defunct telephone exchange . “ combine bitcoin month finish balance [ … ] ranged from a Sir David Low of nil to a peak of close to 2,776 bitcoin , ” investigatorsnoted — just over 10 percent of the 26,500 bitcoin presently owe to client . These svelte - than - expect balances were also empty eight calendar month before Cotton ’s supposed death .
QCX had previously run afoul of governor at Canadian Imperial Bank of Commerce , whofrozearound $ 20 million ( U.S. ) in January of last class after fall upon issues with its payment processing .
Currently , the “ investigation into the interchange story is at a preliminary stage , ” and it ’s potential Ernst & Young have not yet discover the mystery wallet containing all the overlook fund .
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