Quadriga Tragedy: A Case Study Or A Warning For The Cryptocurrency Sphere

The popular Canadian Quadriga Fintech Solutions Corp is currently going through some serious issues. The corporation used to handle roughly $190 million Cryptocurrency money access keys that were kept in its exchange.

However, the keys to this offline storage are feared to be presumed lost. There is currently a fear of freezing such a large amount of Cryptocurrency. This fear only rose up when Gerald Cotton; the company’s founder died.

The death of Gerald Cotton was made public via the Facebook page of Quadriga on the 14th of January 2019. Additionally, Gerald died at a young age of thirty due to Crohn’s disease complications. He died while volunteering at an orphanage in India.

A Bit About Quadriga

The platform by name Quadriga enabled the buying of Ethereum, LiteCoin and Bitcoin Cryptocurrencies.  Not too long, the company filed for Creditors protection at Nova Scotia Supreme Court. It was filed last week.

Basically, Quadriga had over 363000 licensed users. Hence, the fear of the Cryptocurrency being frozen is gradually coming out to be true. Currently, Quadriga owes an overall sum of $250 million to 115k of its users that were affected.

Subsequently, this news was confirmed via the affidavit filed by Mrs. Jennifer Robertson; Gerald’s widow. She filed this affidavit on behalf of the company.

So, What’s The Issue?

It was revealed in the legal document that Gerald Cotton’s primary computer has a cold wallet of Cryptocurrencies. This wallet is said to be accessible only physically and cannot be accessed online.

Due to his death, roughly $180 million worth of Cryptocurrencies is stored both unused and inaccessible as it is locked in the cold storage wallet.

Jennifer, Gerald’s widow, claims she was not involved in his Cryptocurrency business. So, she has no idea what the password to the cold wallet could be. Neither is she aware of any recovery key for the cold wallet.

She went on to say she has not found any password or key jotted down in anywhere. She has looked around and did not find anything.

Furthermore, she went on to consult the help of a technological professional. The professional has only been able to gain finite access to some of the Cryptocurrency coins and also some more information.

However, Gerald Cotton’s computer has not been touched. Meanwhile, the coins they have gotten access to cannot be sufficient for a large number of users. But, the information gotten can give a clue as to how the cold storage wallet can be accessed.

Jennifer Robertson; Gerald Cotton’s widow,  went on to say that she has been getting online threats and some questionable comments asking if her husband is actually dead.

To Wrap It Up

Basically, this Quadriga tragedy has managed to raise some tough questions about the Blockchain and its Cryptocurrency technology. It has also given the Cryptocurrency sphere a clue that some basic difficulties could plague the ecosystem. These are difficulties that no one paid attention to earlier on.

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