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Crypto Trader Boss Dies With Password To Clients’ £110m

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Canada’s leading cryptocurrency exchange company has said it cannot repay $190m (£110m) to clients because its founder died with their passwords.


QuadrigaCX’s founder Gerald Cotten, 30, died “due to complications with Crohn’s disease” while travelling in India to open an orphanage in December, his wife Jennifer Robertson said.

Mr Cotten held “sole responsibility for handling the funds and coins” and no other members of the team could access the stored funds, she said in a sworn affidavit as she filed for credit protection on 31 January.

Ms Robertson said about $190m (£110m) in both cryptocurrency and normal money is in “cold storage” – where the company, or just Mr Cotten in this case, holds the key, not the client.

The founder held “sole responsibility for handling the funds and coins” and no other members of the team could access the stored funds, she added.

She has her husband’s laptop but she does not know the password and a technical expert they hired had not been able to bypass its encryption, she told the court.

On 31 January the company’s board of directors applied for creditor protection, with Ernst & Young expected to be appointed on Tuesday to oversee the proceedings.

A statement from the board said: “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.

“Unfortunately, these efforts have not been successful.”

QuadrigaCX customers have been complaining on social media that they have not been able to withdraw money from their accounts.

Ally Shapoval wrote: “Hello, Quadriga! I withdrew money from my Quadriga account to my bank more than 2 weeks ago. WHERE IS MY MONEY? STILL NOT THERE.

“I sent you emails, you are not responding.”

Another wrote in French: “I have sent lots of emails, but I just get automatic responses, I’m not even able to get my crypto out.”

Some are questioning whether Mr Cotten is even dead and others have accused the company of lying to them.

Ms Robertson added in the affidavit that she and her colleagues have had threats made against them from online cryptocurrency communities – especially from Reddit users.

Source: Sky News

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Admit you made mistakes that triggered feud with regulators – Hammer to NAM 1

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Barely twenty-four (24) hours after Members of the Coalition of Aggrieved Customers of Menzgold on Tuesday, 27 November 2018, hit the streets of Accra to protest against the management of the gold-trading firm, the Chief Executive Officer, Nana Appiah Mensah has replied the customers.

Aggrieved Customers protested against Menzgold management in demand for the payment of their full principal investments locked-up with the company.

The displeased Menzgold Boss who believes that the Coalition of Aggrieved Customers are adding more woes to the already unsolved issues which dent his personality responded to the demonstration by the customers.

In his tweet, Nana Appiah Mensah indicated that Menzgold customers have taken heed to misconceptions and destroying his hard-earned reputation.

“Instead of us being resolute, you’ve fallen for the misconceptions and further denigration of my name & the brand. We shall do the needful now. God knows we defended our collective cause.#Posterity #Hail! Menzgold Global” NAM1 Tweeted

However, the CEO of The Last Two Music Group, Edward Nana Poku Osei, known in showbiz circles as Da Hammer sent a subtle reply to Nana Appiah Mensah to admit that his mistakes triggered the feud with regulators resulting in his misfortunes.

“I know u genuinely wntd to make & share e wealth wi ur fellow Ghanaians bt u must admit dat u made mistakes dat triggered dis feud wi regulators resulting in ur misfortuns. Regardless u stil earned my respect as One of e greatest minds of our time I hope u able to cme out of dis clean” [sic] Hammer’s reply to NAM 1.

The company was asked to shut down its Gold vault trading by the Security and Exchange Commission (SEC) in August, after its brushes with SEC and BoG over the company’s operations.

The state agencies insist Menzgold does not have the licence to conduct business in the manner it was doing by paying dividend to clients.

Meanwhile, the company has shifted its operations online to replace their initial business of trading gold with customers and paying dividend at their offices.

……Ghanaweb

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World Bank Gives Ghana $30m Credit Support

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The World Bank has approved a $30 million International Development Association (IDA) credit to support the Government of Ghana strengthen its financial sector stability.

The support is also to improve inclusiveness for users of formal financial services and the financially excluded, particularly women, rural communities and farmers.

Commenting on the gesture, the World Bank Country Director for Ghana, Henry Kerali said,

“This project will support Government’s plan to undertake reforms to deepen financial markets, promote inclusion, enhance the supervision and regulation of specialized deposit-taking financial institutions in line with Ghana’s National Financial Inclusion and Development Strategy.”

A statement from the World Bank to Citi Business News said: “The Ghana Financial Sector Development Project, is a key component of the World Bank Group’s comprehensive portfolio supporting financial stability, financial inclusion and private sector competitiveness.”

It added, “It is expected to help regulators strengthen their oversight of the financial sector for a sound and stable sector. This will enable ordinary Ghanaians develop trust in the sector and benefit from access to savings and financing for investments. It will also support the education of consumers on their rights and equip them with skills and knowledge to make informed choices in the use of financial services.”

Meanwhile, the project will also promote financial inclusiveness by mainly supporting rural and community banks to expand financial services to rural areas and the underserved segments of Ghanaians.

World Bank Practice Manager for Finance & Markets, Douglas Pearce added that,

“The increase in access to financial services is expected to create economic opportunities and contribute towards ending extreme poverty and promoting shared prosperity.”

The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.

IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa.

Resources from IDA bring positive change to the 1.5 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries.

Annual commitments have averaged about $18 billion over the last three years, with about 54 percent going to Africa.

-Citifmonline

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ECOWAS makes strides to achieve single currency

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The Economic Community of West Africa States (ECOWAS) appears to be making strides in achieving a single currency for the West African sub-region.

Commissioner for Macroeconomic Policy and Economic Research with the ECOWAS Commission, Dr. Kofi Konadu Apraku, who made the revelation said, “ECOWAS Commission, in collaboration with West African Monetary Agency (WAMA) and West African Monetary Institute (WAMI) and with the active support of the Central Banks, has made progress in the implementation of the Revised Roadmap for the ECOWAS Single Currency adopted in Accra in February 2018.”

This was during the 40th Meeting of the Convergence Council of Ministers and Governors of Central Banks of the West Africa Monetary Zone (WAMZ) in Abuja, Nigeria last week.

Progress report

Speaking at the event, Dr Apraku indicated that “the activities executed and ongoing include the establishment of the Special Fund to finance the implementation of the roadmap activities, process for the recruitment of consultants for the harmonization of macroeconomic and finance frameworks and the design of the model of the future Central Bank, as well as the name and logo for the future Single Currency.”

On infrastructure, he disclosed that “ECOWAS has made notable achievements in the implementation of sustainable programmes, including energy and road transport in the region.”

Aside that, he said “efforts are being made, within the framework of the financial market integration and private sector promotion, to establish a regional payment and settlement system and the ECOWAS Investment Guarantee Mechanism.”

As regard peace, security and stability, he revealed that “ECOWAS has several instruments such as preventive diplomacy, early warning, capacity building and peace-keeping and regional security and the key achievements are in the areas of the management of political crises, election support and monitoring in some member states and the implementation and administration of the Protocol on Democracy and Good Governance, which have increased the influence of ECOWAS on countries in crisis.”

On the promotion and liberalization of trade in the region, he emphasised that “significant progress has been made in consolidating the customs union status of the community.”

For this reason, he stressed the need for the creation of the Free Trade Area (FTA), through the establishment of ECOWAS Trade Liberalization Scheme (ETLS), a Protocol on Interstate Road Transit (ISRT) and a transit operations guarantee scheme.

He disclosed that the ECOWAS-Common External Tariff (CET) had been implemented by 13 member states as at August 2018.

Additionally, the Commissioner stressed that “an ECOWAS Customs Code has been adopted to ensure the harmonization of Customs legislation and operations in the region and to facilitate trade in accordance with the requirement for the proper functioning of a Customs Union.”

Concerns

Despite these achievements, Dr Apraku said that “we still have a lot of challenges to overcome. The twin challenges of unemployment and poverty, as well as the need to achieve sustained economic growth and macroeconomic convergence still persist.”

He implored the WAMZ Convergence Council to work on the ineffective implementation of the Community protocols and conventions, non-compliance by some member states with the provisions of the Community Levy Scheme; negative impacts of exogenous shocks on the national economies, a fragile political and security situation existing in some member states, which is inimical to inclusive economic growth and sustainable development.

In spite of the numerous challenges, he noted that ECOWAS remains the most dynamic Regional Economic Community (REC) in Africa.

…Ghanaweb

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