If the insane value gyrations, scams and exchange failures of crypto currencies have not scared you away from them, this story should do the trick. QuadrigaCX was a Canadian based Crypto Currency Exchange until a few days ago when the founder, Gerald Cotten, died and took the decryption codes to his grave. This means about CDN $200M of ‘investor’ money is forever lost in hyperspace.
To make this story worse, the are some very smelly peculiarities to it:
- It is extremely unusual that the decryption keys to a company would only be known by one person
- The founder was just 30 years old and claims to have died from Crohn’s disease, which is possible but extremely rare, especially in someone so young
- The founder was married just a month before his death
- The founder wrote a very thorough will (even including his dogs!) just two weeks before his death, which is odd for a 30 year old
- It has been reported that the Indian funeral home where Gerald Cotten was supposed to be has no record of him
- The founder died in India where it is known that official death certificates can be purchased
- Some of the money in the locked digital wallets is still being moved around, which should not be possible if no-one has the decryption keys
The insinuation from many is that the founder, Gerald Cotten, is alive and well with a lot of other peoples money.
PartistanIssues.com has no idea if Mr. Cotten is alive or dead but we do know that both scenarios should scare anyone dealing with cryptocurrencies:
- If he is alive, you should take from this story that it is very risky to give large amounts of money small companies (most Cryptocurrency companies)
- If he is dead, you should take from this story that crypto currencies are largely unregulated, sometimes unprofessional and frequently dangerous places for your money
If you know anything about crypto currencies like Bitcoin and Aetherium, you should know that you need to have your own crypto-keys. Otherwise some else has your money and that will often lead to big problems in a wild west industry like cryptocurrency.
These two videos explain the details of the Gerald Cotten QuadrigaCX tailspin: