The strange case of QuadrigaCX and how to lose $140 million in crypto in an instant. (Bitcoin, Ethereum and Litecoin)Getty
As if crypto winter could not get any colder, the bizarre case of QuadrigaCX, a Canadian cryptocurrency exchange, is both a bucket of cold water and a 101-level lesson in operational risk management. The exchange, home to more than $140 million in cryptocurrencies is in the news and in the Canadian courts due to the death of its founder, Gerald Cotten, who passed away in December and took with him the only passwords to their crypto vaults. By every measure, more than 115,000 hapless investors are left without access to their crypto wealth and little recourse to recover their assets.
The matter of QuadrigaCX is scheduled to appear before Canadian courts today, where the request to stay any litigation granting the company time for an orderly liquidation of assets, including potentially the sale of the platform (albeit like buying a car without keys), is on the docket. This case, under the watchful eye of EY, which has been appointed to monitor the process, will be precedent setting and underscores the relative immaturity of risk…
