Very shortly before his death he got his affairs in order and flew to India. Then it’s reported he died along with a death certificate from India. Now they can’t find $200mil in crypto and are not reporting the cold storage addresses.
Would not surprise me if there has been massive fraud here, whether the CEO is alive or not. Everything is too convenient.
If you want to read posts from many sad and pissed off people, their subreddit is full of them https://www.reddit.com/r/QuadrigaCX
Source: I've lived in 7 cities in India all my life.
What happens? How do people punish him?
This is a huge red flag. It's really easy to get fake IDs, passports, marriage certificates, death certificates, driver's licenses etc in India, if you grease the right hands. and it's not even that much in USD. We are talking a couple of 100 bucks ( USD ) for a new passport with a new name and far less for other things.
 Source: Me. I) had to bribe a DMV officer about 200 Rs ( 4 USD back then in 1999) to get my Driver's License , so I can drive in US. I had to do this cos I was leaving in 3 days and I'd landed a job the previous week ( Had my H1-B ready to go).
I didn't even go to the DMV. He delivered the "International Drivers Permit" drivers license right to my door in 2 days.
"Mr. Cotten was diligent in other areas of his life. He signed a will on Nov. 27, less than two weeks before he died."
If that his first will, either he knew he was so ill this was a chance or another red flag.
At least in e-commerce, you can always send an email to the customer explaining the mistake, and cancel the order...
They are claiming he died from
Chron’s disease which is highly unlikely.
It seems like a plausible deniability move. He probably has Chron’s disease and that can be easily proven through his medical history.
Also is easier to tie that, to a story in which he couldn’t get the right treatment for his Chron’s disease complications abroad.
(Serious question, I have no idea what the answer is).
I've been unwell in India, and had unwell children there. India probably sucks if you have no money, but if you have a white face or other sign of affluence, then getting to a physician or hospital is no problem at all, and the care is good.
This is true in most of the world, not just India :P
The trip to India was supposed to open an orphanage. This orphanage was built by an organization that accepts large donations for specific buildings such as orphanages or water wells. For an orphanage, it costs $ 50,000.
It did not seem to me, when visiting this organization's website, that they have full transparency about these negotiations and these expenses.
And so far they have not released addresses for cold wallets. Okay, he had the private key. But public keys would have to be known by the system.
Source: I have family working in this sector. Shit is difficult, especially if you are a foreign personal.
> Corruption is indeed rampant
Are you seriously claiming you couldn't get a fake record in India for USD$1m? or even USD$100k? That is a lot of money for a doctor in India. I have a trouble believing it would be all that hard.
It was probably all organised before he even got on the plane.
I am no expert but Indian laws are very strict when it comes to foreign money transactions. The law behind is called the Foreign Contribution (Regulation) Act, 2010. Everyone taking in foreign contributions need to register and file the amount of dollars flowing in.
I tried searching for the NGO on the FCRA website:
in state of Andhra Pradesh and got nothing.
Fake your death, get some plastic surgery done, enjoy life with those $200 million dollars
I’m quite confident the lawyers will get to the bottom of this.
Using bitcoin as currency always made the most sense over a store of value. The exchanges have all of the properties of a 1910 bank just waiting to get robbed while the bank manager has already taken the loot from the vault.
In heists, the coins become tainted and very difficult to sell as everyone can see their origin.
Mtgox removed quite a lot of BTC from the circulating supply.
Don't really want to split hairs here, but there's still 137,891 BTC left in Mt Gox cold wallets that has yet to be liquidated by the administrators. (Out of the 200k that was 'found'). That's quite a significant amount by anyone's calculation.
Anything that 4chan's /biz/ board promotes aggressively is a scam 9/10 times
It's a bit like money. Money itself isn't bad, but people do incredibly bad things to get money. Likewise, crypto isn't "a scam". People make a lot of scams related to cryptocurrency, but that doesn't mean many of the concepts of cryptocurrency are bad or a scam.
Bitcoin may be quite imperfect, but it's also quite useful for exchanging value quickly and cheaply, and without banks getting to decide if you can or cannot.
But if I wanted to buy drugs, then, yeah probably.
Also 90% of the population is in the developing world where it might actually be the case that BTC is more trusted than their local currency.
I think it’s myopic to consider the value of crypto against the 1st world’s banking system with respect to ‘standard’ transactions.
The value lies in either: ‘non-standard’ transactions (buying black market goods) or in developing nations.
I think BTC might be an attractive alternative here.
Moreover, by some measures, annual inflation is 7-10%. So holding the local currency is highly penalized
Crypto as a way to avoid taxes, buy goods on the black market, and as an alternative to a shaky local fiat currency are all great examples of crypto’s value.
Also, there’s also the investment angle. It (hopefully) operates as an uncorrelated store of value much like gold or other precious metals.
I think it would be very hard to argue that BTC and ETH are scams, that is, created for the purpose of the scammer stealing from the “scammee.”
Bitcoin only got as much traction as it did because of the financial crisis.
It's certainly one or other when this sort of thing happens.
I’m smart enough to have given a friend my 1Password emergency recovery kit and, I tell you now, that ain’t worth $200m.
The sector is clownshoes. We should not be surprised by clownshoes behavior in it. There is a spirited debate on whether a putative financial firm with 9 figures under management perpetuated a nine figure control fraud or was merely markedly less sophisticated at accounting controls than the bookkeeper at my daughter’s kindergarten, that being the plausibly exculpatory option in crypto.
Most of the business of the Companies was being conducted by Gerry wherever he and his computer was located. This was most often at our house
This is going to keep happening, over and over again. Put your money in this stuff at your own peril.
I would have faked a hack and announce that 8% of coins were stolen or whatever. $15 million, means that at least he could have gotten half of it in cash (assuming a laundering discount) and a lot more if the price rises. Retire in a foreign country and be quiet.
this basic question gets downvoted on any forum you'd think of - husband/wife has large amount of money in crypto, they die due to unforeseen circumstances(or even foreseen circumstances but it's a quick degradation of mental facilities). who does the spouse approach for the crypto? they have proof of death so why don't they get the money? poof, value gone - have fun now you're a destitute relative coz you can't figure out passwords(most grieving relatives can't)!
this is why no one trusts crypto,these simple things aren't a fundamental part of the platform. you get people telling you these convoluted solutions(that may or may not work). the fraud potential is sky high. is crypto only meant as a transient toy?
Of course at this point you are (sort of) trusting a bank with your money (so why are you using crypto, again?) but it's probably safe and the safe deposit box + its contents would pass through all the usual legal procedures around an estate and more than likely pass safely to the intended beneficiary.
No, it is like saying cryptography has important long term consequences. I don't even see any synonyms for "fault" in the post.
There are mechanisms if someone is careful about their estate planning, the issue is we have a great deal of evidence that most people don't do estate planning  and the courts have to clean up the mess.
Kkarakk is completely correct in saying that a (potentially non-technical) spouse or heir is being exposed to an exciting new way of losing large sums of money that they are entitled to. This is clearly a disadvantage of cryptocurrency, even if it is an intentional part of the design.
You could even leave parts of the key material with different lawyers/institutions, so that they would have to collude AND steal your hard drive/hardware wallet to access anything prematurely.
Haven’t read it; I just googled “crypto estate planning” (which google had an autocomplete for).
That was the whole point of the comment you were replying to. Legal real-world contracts are simply better for the scenario described.
It's almost like they never heard of Mt.Gox and MagicalTux.
We have to learn when to participate & when not to. Learn to identify ponzi shcemes, coz they're here to stay.
Analogous, stock-market & trading; bigger companies/fish will always reap better than individual participants.
Everyone wanting to pretend to be Wolf of Wall Street and brag about not understanding technology but making a ton of money trading it? This is easily avoidable by all parties and their ignorance is catching up to them