Charlie Buttrey

February 7, 2019

I have blogged on several occasions about cryptocurrencies, and why you should avoid them. The fact that Bitcoin’s value has fallen from a high of about $20,000 to $3,500 may give you a hint (and this Harvard economist, for one, believes its long-term value will more closely approximate $100 than $100,000).

Here’s another reason: According to this article from Reuters, about $137.21 million in cryptocurrencies have been frozen in the user accounts of Canadian digital platform Quadriga after its founder, Gerald Cotten, the only person with the password to gain access, died suddenly in December.

Quadriga, which allows the trading of Bitcoin, Litecoin and Ethereum, has 363,000 registered users and owes a total of $190 million to 115,000 affected users, according to an affidavit filed by Cotten’s widow Jennifer Robertson on behalf of the company.

Robertson said in the affidavit that Cotten’s main computer contained a “cold wallet” of cryptocurrencies, which is only accessible physically and not online, and his death left “in excess of $180 million [Canadian] of coins in cold storage.”

Robertson said she was not involved in Cotten’s business while he was alive and did not know the password or recovery key.

Call me old-fashioned but, as for me, I’ll stick with something that has the backing of the U.S. Treasury.

© 2019 Charlie Buttrey Law by Nomad Communications