Saturday, April 17, 2021
  • Setup menu at Appearance » Menus and assign menu to Top Bar Navigation
Advertisement
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News
No Result
View All Result
NikolaNews
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News
No Result
View All Result
NikolaNews
No Result
View All Result
Home Internet Security

$145 million funds frozen after death of cryptocurrency exchange admin

February 2, 2019
in Internet Security
$145 million funds frozen after death of cryptocurrency exchange admin
586
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

Roughly $145 million worth of cryptocurrency funds are frozen in the cold (offline) wallet of a Canadian cryptocurrency exchange portal after the death of its owner.

QuadrigaCX, the exchange, has filed for legal protection against its creditors in accordance with Canadian law until it regains access to the funds, according to a message posted on its website.

You might also like

Google releases Chrome 90 with HTTPS by default and security fixes

SolarWinds: US and UK blame Russian intelligence service hackers for major cyberattack

Google Project Zero testing 30-day grace period on bug details to boost user patching

Problems for the exchange started in December 2018, when its CEO, Gerry Cotten, died of Crohn’s disease in Jaipur, India.

Cotten was the only one who had access to the company’s cold wallet. Despite his death, the exchange continued to operate for nearly a month by using the liquidities stored in its hot (online) wallet and fiat currency bank accounts.

Cotten’s death wasn’t even noticed by most of the exchange’s users until two weeks ago when his widow, Jennifer Robertson, announced his passing on Reddit, triggering a mass withdrawal of funds that destabilized the exchange.

“For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us,” the company’s board said in a message posted this week on its website.

“Unfortunately, these efforts have not been successful.”

Some of these efforts “to locate and secure” the cold wallet funds included hiring an IT consultant to attempt to decrypt Cotten’s laptop and gain access to the cold wallet password, according to cryptocurrency news portal CCN.

This wallet is at the center of QuadrigaCX’s operation. It stores quite a considerable amount of funds, according to a court document filed this week by Cotten’s widow, obtained by CoinDesk, another cryptocurrency news site. In particular, around 0.5 percent of all Ether coins currently in circulation are now frozen in Cotten cold wallet, according to an Ethereum market analyst.

QuadrigaCX frozen funds

According to the same court filing, besides the $145 million worth of cryptocurrency funds frozen in Cotten’s cold wallet, the company also owes another $53.5 million in fiat currency, which it now cannot pay after using some of its reserves and after Canadian authorities froze other accounts due to irregularities –per an AMBCrypto report.

More and more users are getting angry that they can’t access their QuadrigaCX funds and for valid reasons. Some are even questioning Cotten’s passing, claiming that he actually may have faked his death and is now living off the funds he had stored on the cold wallet.

QuadrigaCX is now asking the court for a stay of proceedings that would preempt any lawsuits that may come from this whole mess. They are also asking the court to appoint international accounting firm Ernst & Young to oversee its operations until everything gets sorted out.

It is highly unlikely that the exchange would ever get access to these funds ever again.

A report from CipherTrace published this week revealed that hackers stole over $1.7 billion worth of cryptocurrency from exchanges in 2018. The QuadrigaCX case may be one of those strange events where users lose money and it’s not because of hackers or a scam.

Related stories:


Credit: Source link

Previous Post

DeepSolar Project uses machine learning, satellite imagery to calculate US solar panels

Next Post

Top 10 Machine Learning Programming Languages

Related Posts

Google releases Chrome 90 with HTTPS by default and security fixes
Internet Security

Google releases Chrome 90 with HTTPS by default and security fixes

April 17, 2021
SolarWinds cybersecurity spending tops $3 million in Q4, sees $20 million to $25 million in 2021
Internet Security

SolarWinds: US and UK blame Russian intelligence service hackers for major cyberattack

April 17, 2021
Google Project Zero testing 30-day grace period on bug details to boost user patching
Internet Security

Google Project Zero testing 30-day grace period on bug details to boost user patching

April 17, 2021
Cyberattack on UK university knocks out online learning, Teams and Zoom
Internet Security

Cyberattack on UK university knocks out online learning, Teams and Zoom

April 17, 2021
Google backs new security standard for smartphone VPN apps
Internet Security

Google backs new security standard for smartphone VPN apps

April 16, 2021
Next Post

Top 10 Machine Learning Programming Languages

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Plasticity in Deep Learning: Dynamic Adaptations for AI Self-Driving Cars

Plasticity in Deep Learning: Dynamic Adaptations for AI Self-Driving Cars

January 6, 2019
Microsoft, Google Use Artificial Intelligence to Fight Hackers

Microsoft, Google Use Artificial Intelligence to Fight Hackers

January 6, 2019

Categories

  • Artificial Intelligence
  • Big Data
  • Blockchain
  • Crypto News
  • Data Science
  • Digital Marketing
  • Internet Privacy
  • Internet Security
  • Learn to Code
  • Machine Learning
  • Marketing Technology
  • Neural Networks
  • Technology Companies

Don't miss it

Google releases Chrome 90 with HTTPS by default and security fixes
Internet Security

Google releases Chrome 90 with HTTPS by default and security fixes

April 17, 2021
ML Scaling Requires Upgraded Data Management Plan
Machine Learning

ML Scaling Requires Upgraded Data Management Plan

April 17, 2021
SolarWinds cybersecurity spending tops $3 million in Q4, sees $20 million to $25 million in 2021
Internet Security

SolarWinds: US and UK blame Russian intelligence service hackers for major cyberattack

April 17, 2021
Machine learning can be your best bet to transform your career
Machine Learning

Machine learning can be your best bet to transform your career

April 17, 2021
AI and Human Rights, A Story About Equality | by bundleIQ | Mar, 2021
Neural Networks

AI and Human Rights, A Story About Equality | by bundleIQ | Mar, 2021

April 17, 2021
Monitor Your SEO Placement with SEObase
Learn to Code

Monitor Your SEO Placement with SEObase

April 17, 2021
NikolaNews

NikolaNews.com is an online News Portal which aims to share news about blockchain, AI, Big Data, and Data Privacy and more!

What’s New Here?

  • Google releases Chrome 90 with HTTPS by default and security fixes April 17, 2021
  • ML Scaling Requires Upgraded Data Management Plan April 17, 2021
  • SolarWinds: US and UK blame Russian intelligence service hackers for major cyberattack April 17, 2021
  • Machine learning can be your best bet to transform your career April 17, 2021

Subscribe to get more!

© 2019 NikolaNews.com - Global Tech Updates

No Result
View All Result
  • AI Development
    • Artificial Intelligence
    • Machine Learning
    • Neural Networks
    • Learn to Code
  • Data
    • Blockchain
    • Big Data
    • Data Science
  • IT Security
    • Internet Privacy
    • Internet Security
  • Marketing
    • Digital Marketing
    • Marketing Technology
  • Technology Companies
  • Crypto News

© 2019 NikolaNews.com - Global Tech Updates