Cryptocurrency investors ‘locked out’ after exchange founder dies

Canada’s largest cryptocurrency exchange has been locked, denying access to millions of pounds worth of investments, because only the deceased founder had the password, according to documents filed in court.

The QuadrigaCX exchange has effectively been out of action since 30-year-old founder Gerald Cotten died unexpectedly on a trip to India from complications of Crohn’s disease in December.

The company says more than £105 million in cryptocurrency “has become unavailable and some of it may be lost”, because he was the only person who knew the password.

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The BBC reports that Cotten had “sole responsibility for handling the funds and coins”, and that his widow, Jennifer Robertson, has not been able to access his encrypted laptop.

In the court filing, Robertson said: “Despite repeated and diligent searches, I have not been able to find [the password or recovery key] written down anywhere.”

Business Insider reports that users of the exchange had been “complaining about withdrawal issues and a lack of communication from QuadrigaCX for months”, prior to the platform being “temporarily paused” by its board following Cotton’s death.

The exchange says it is currently unable to repay more than 115,000 investors, and is petitioning the Nova Scotia Supreme Court for protection from lawsuits while it looks for a solution, CoinDesk reports.