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Bitcoin, other cryptocurrency holders’ funds in limbo as CEO with password dies in Jaipur

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[vc_row][vc_column][vc_column_text]At least C$190 million ($145 million) of investors in Bitcoin and other digital currency holders got lost in cyberspace after the chief executive of cryptocurrency exchange QuadrigaCX, Gerald Cotten, the only person with password and security keys to access the money, died suddenly while in Jaipur, India.

Cotten, 30, died of complications from Crohn’s disease on December 9.

While efforts to crack the code and retrieve the money have not yielded results yet, the Vancouver-based company had moved court seeking protection from creditors after weeks of attempting to “locate and secure our very significant cryptocurrency reserves” following Cotten’s death.

The company, QuadrigaCX, said in court filings that the CEO, Gerald Cotten, was the only person who knew the security keys and passwords needed to access the funds.

AFP reported that a Canadian court on Monday granted bankruptcy protection to the company. Another report said that the Supreme Court of Nova Scotia on Tuesday approved the company’s request for protection against creditors for 30 days and the appointment of accounting firm Ernst & Young to sort out Quadriga’s finances and explore a possible sale.

Cotten’s widow Jennifer Robertson said the company has been unable to access an encrypted computer that Cotten reportedly used to store the cryptocurrencies to 1,15,000 users. “I do not know the password or recovery key,” she said. “Despite repeated and diligent searches, I have not been able to find them written down anywhere.”

She added that an expert “has had some limited success in recovering a few coins and some information on Gerry’s cellphones and other computer, but not yet from the main computer he used to conduct business [with]”.

Robertson’s affidavit stated that Cotten’s laptop, email addresses and messaging system were encrypted to prevent them from being hacked, Bloomberg reported. Cotten was the only person in charge of funds and coins as well as the banking and accounting side of the business.

Cotten filed a will on Nov 27, 2018, 12 days before his death listing substantial assets, according to court documents, said a report on NDTV. He left all his assets to his wife, Jennifer Robertson, and made her the executor to his estate, the documents show.

The exchange, launched in December 2013, allowed users to deposit cash or cryptocurrency through its online trading platform, storing the digital coins on blockchain ledgers that are accessible only by an immutable alphanumeric code. The company had 363,000 registered users, of which 92,000 have account balances owing to them in cash or cryptocurrencies, according to court filings. Cotten was the sole officer and director.

The firm can’t retrieve about C$190 million in Bitcoin, Litecoin, Ether and other digital tokens held for its customers, nor can Vancouver-based Quadriga CX pay the C$70 million in cash those clients are owed.

Cotten was always conscious about security – the laptop, email addresses and messaging system he used to run the 5-year-old business were encrypted. He took sole responsibility for the handling of funds and coins and the banking and accounting side of the business and, to avoid being hacked, moved the “majority” of digital coins into what’s known as cold storage, or unconnected to the internet, the filing said.

The problem is, Robertson said she can’t find his passwords or any business records for the company. Experts brought in to try to hack into Cotten’s other computers and mobile phone met with only “limited success” and attempts to circumvent an encrypted USB key have been foiled, she said in the court filing.

The company’s inability to release its clients’ money has created an uproar among angry — and highly suspicious — investors.

While other crypto exchanges have lost their clients’ money, this appears to be the first one that has said it actually lost the keys to its accounts.

Some Quadriga clients who claim they’re owed money are pursuing their own legal avenues, including software engineer Xitong Zou of Orillia, Ontario. The client claims to be owed about C$560,000 from Quadriga — “one of the largest individual affected users” — according to the affidavit filed in a Halifax court on Feb. 5.

Xitong Zou and others are part of an informal committee of affected users that retained law firm Bennett Jones LLP and McInnes Cooper to represent them during the creditor protection proceedings.

Other customers named in the affidavit include: Tong Zou, with C$560,000 outstanding Epsilon One Pty Ltd., with C$1.04 million and $81,697 outstanding Matthew Leudy, with C$438,677 outstanding Benoit Gagne, with C$371,000 outstanding Block Trading Corp., with C$678,043 Tin Do, with C$525,000 and 523 Ethereum.

Quadriga’s platform went offline Jan. 28, and frustrated investors have taken to Reddit and Twitter to discuss their investigations into the company’s claims and potential lawsuits. Some questioned whether Cotten had indeed died — or whether, perhaps, he had faked his death to pull off what is known as an exit scam.

“The death came at a very odd time in the history of that company,” said Emin Gün Sirer, a professor at Cornell University and co-director of the Initiative for CryptoCurrencies and Contracts, according to a New York Times (NYT) report.

He noted that various online sleuths had been searching the blockchain, a ledger that can be updated by decentralized networks, for evidence of where Quadriga had stored its assets, but had found none, which raised red flags.

When it shut down, Quadriga’s platform had 363,000 users, and 115,000 of them had balances in their accounts: about $180 million in cryptocurrency and $70 million in Canadian currency, the court documents state. The exchange enabled trades of bitcoin, Litecoin and Ether, plus other types of cryptocurrency. The largest user claim was valued at about $70 million.

Quadriga was one of 237 widely recognized public cryptocurrency exchanges worldwide, Sirer told NYT. In terms of daily trade volume, it was ranked in the middle of the pack as of October, according to the website CoinMarketCap.

The exchange kept currency in “hot wallets,” which were connected to the internet and could quickly fulfill withdrawal requests, and “cold wallets,” which were kept offline and stored physically, such as on a USB stick, making them more secure, according to court papers.

Cryptocurrency investors, on social media and in interviews, questioned why a chief executive would be the sole point of access to such a vast sum.

In an initial report to the court, Ernst & Young wrote that it was facing an extraordinary set of case facts. Quadriga had no discernible accounting system and no bank account, according to the filing. Cotten typically sent directions to release payments, which were made through third-party payment processors, to employees by email, and payment inflows and outflows “were not systemically tracked,” Ernst & Young wrote.[/vc_column_text][/vc_column][/vc_row]

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Hindu man lynched and set on fire in Bangladesh during anti-India protests

A Hindu man was lynched and set on fire in Bangladesh’s Mymensingh district amid rising anti-India protests after the death of a radical student leader.

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Hindu man set to fire in Bangladesh

A disturbing incident of mob violence against a minority community has been reported from Bangladesh, where a Hindu man was lynched and his body set on fire amid escalating anti-India protests following the death of a radical student leader.

Mob lynching reported from Mymensingh district

A 30-year-old Hindu man, Dipu Chandra Das, was lynched by a mob in Bhaluka Upazila of Mymensingh district after allegations surfaced that he had insulted Islam. According to media reports, the incident took place on Thursday night at an industrial area where Das was employed.

Das was accused of making derogatory remarks about Islam and Prophet Muhammad during an event organised at his workplace to mark World Arabic Language Day. The allegations spread rapidly within the factory premises and nearby areas, leading to heightened tension.

Eyewitness accounts cited in media reports said Das was assaulted by an angry crowd and died on the spot. After his death, the mob allegedly tied his body to a tree, beat it while raising slogans, and later set it on fire.

Body burnt at multiple locations, traffic disrupted

The violence did not stop there. Reports suggest the mob later moved Das’s body to a nearby bus stand area and again set it ablaze. Subsequently, the body was taken to the Dhaka–Mymensingh highway, where it was burned once more, leading to panic among locals and a temporary disruption of traffic on the busy stretch.

Confirming the incident, the local administration said a person was killed following allegations of insulting the Prophet. Officials added that the body has been taken into police custody and the situation is being monitored.

Interim government condemns violence

The lynching took place against the backdrop of widespread protests across Bangladesh following the death of Sharif Osman Hadi, a prominent leader linked to the July Uprising. The Muhammad Yunus-led interim government strongly condemned the killing, stating that there is no place for such violence in the country.

In an official statement, the government appealed to citizens to reject hatred and violence, stressing that those responsible for the crime would not be spared.

Anti-India sentiment intensifies after Hadi’s death

Tensions have been high in Bangladesh since Hadi’s death, with protests, vandalism and arson reported in several cities. Demonstrators targeted prominent media offices and symbolic locations linked to the country’s political history.

Hadi was known for his sharp criticism of India and the former prime minister, whose government was ousted during last year’s uprising. Groups formed after the political upheaval have been actively mobilising street protests and campaigns that fuel anti-India sentiment, particularly after the former premier went into exile in India.

The lynching of Dipu Chandra Das has further raised concerns over the safety of minority communities amid the ongoing unrest in the country.

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Bangladesh rocked by violent protests after student leader Sharif Osman Hadi’s death, anti-India slogans raised

Bangladesh has witnessed widespread violence and protests following the death of student leader Sharif Osman Hadi, with arson, anti-India slogans and a nationwide security clampdown.

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Bangladesh

Violent protests erupted across Bangladesh after the death of student leader and political figure Sharif Osman Hadi, triggering fresh instability in the country and a sharp rise in anti-India sentiment. The situation turned volatile in Dhaka and several other cities as thousands of demonstrators poured onto the streets demanding swift action against those responsible for his killing.

Hadi, 32, was shot in the head by masked assailants while launching his election campaign in Dhaka last Friday. He was later airlifted to Singapore for treatment, where he succumbed to his injuries. Known for his polarising views and strong anti-India rhetoric, Hadi had emerged as a prominent face during the 2024 student uprising that led to the ouster of former prime minister Sheikh Hasina.

Fires, arson and tense streets in Dhaka

Soon after news of Hadi’s death broke, protests intensified in the Bangladeshi capital. Several buildings, including those housing leading media organisations, were set on fire, with authorities confirming that staff members were trapped inside during the blaze. Fire services later said the situation was brought under control, while security forces were deployed in large numbers to prevent further violence.

Demonstrators were seen chanting slogans invoking Hadi’s name, vowing to continue protests until those behind the attack were arrested. Multiple areas in Dhaka remained tense late into the night as police and paramilitary units attempted to restore order.

Protests spread, Indian mission targeted in Chittagong

Violence was not limited to the capital. In the port city of Chittagong, protesters gathered outside the Indian Assistant High Commission, raising anti-India slogans amid heightened anger on the streets. Similar unrest was reported from other parts of the country, signalling the widening scale of the crisis.

In Rajshahi, demonstrators torched Bangabandhu Sheikh Mujibur Rahman’s residence and an Awami League office, causing extensive damage. Authorities have not yet released a detailed assessment of losses, but security has been tightened across sensitive locations.

Anti-India sentiment deepens diplomatic strain

The latest unrest comes amid deteriorating ties between India and Bangladesh following Sheikh Hasina’s flight to Delhi. Earlier in the week, protesters under the banner of “July Oikya” marched towards the Indian High Commission in Dhaka, demanding Hasina’s return and raising hostile slogans against India.

India has formally conveyed its concerns to Dhaka over threats to its diplomatic missions and inflammatory statements by Bangladeshi political figures. New Delhi has rejected allegations linking India to the attack on Hadi, calling such claims false and misleading.

Yunus calls for calm, state mourning announced

In a televised address, interim chief Muhammad Yunus described Hadi’s death as an “irreparable loss” to Bangladesh’s political and democratic space. He urged citizens to exercise restraint, warning that continued violence could derail the country’s path towards a credible election.

The interim administration has announced a day of state mourning in Hadi’s honour, with national flags to fly at half-mast and special prayers planned nationwide. Bangladesh has been under an interim government led by Yunus since August 2024, with national elections scheduled for February 12.

India issues advisory for its nationals

Amid the unrest, the Indian High Commission in Dhaka issued an advisory asking Indian nationals in Bangladesh to avoid non-essential travel and limit movement outside their residences. Emergency contact details of Indian missions have been shared for assistance.

Manhunt launched for attackers

Bangladesh police have launched a manhunt for those behind Hadi’s killing, releasing photographs of two suspects and announcing a reward of five million taka for information leading to their arrest. Yunus has described the attack as a premeditated attempt by a powerful network to sabotage the electoral process.

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India closes two more visa centres in Bangladesh amid worsening security concerns

India has temporarily closed visa application centres in Rajshahi and Khulna, citing security concerns following protests near Indian establishments in Bangladesh.

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India closes two more visa centres in Bangladesh amid worsening security concerns

India has shut two additional Indian Visa Application Centres (IVACs) in Bangladesh — in Rajshahi and Khulna — citing the prevailing security situation in the country. The move comes a day after protests were held near the Indian High Commission in Dhaka by radical groups, raising concerns over safety around Indian establishments.

An official notification issued on the IVAC website said the centres in Rajshahi and Khulna were closed on December 18 due to security reasons. Applicants who had appointments scheduled for the day have been assured fresh slots at a later date.

The decision follows the temporary shutdown of the visa application centre in Dhaka earlier, even as New Delhi flagged a rise in open hostility towards India, particularly targeting the northeastern region, under the interim government led by Muhammad Yunus.

Bangladesh rejects India’s security assessment

Bangladesh’s Foreign Affairs Advisor Touhid Hossain dismissed India’s concerns and denied any deterioration in law and order. He distanced the interim administration from recent inflammatory remarks made by National Citizen Party (NCP) leader Hasnat Abdullah, who had publicly threatened to cut off India’s “seven sisters” and also issued comments against the Indian High Commissioner.

Hossain said the individual was not part of the government and termed his statements irrelevant. He also claimed that security arrangements were in place and that the shutdown of the Dhaka visa centre coincided with a local programme, which raised security-related questions.

Political backdrop and India’s response

The NCP, which emerged from student-led protests that led to the fall of the previous Awami League government, has extended support to the Yunus-led interim setup. Though the party has limited political presence, radical elements associated with it have organised anti-India demonstrations in Dhaka.

India, in an earlier statement, urged the interim government to ensure internal law and order and hold peaceful elections so that Bangladesh can return to an elected administration. However, the interim government appeared dismissive of this advice, with Hossain stating that India need not advise Dhaka on conducting elections.

Observers in Bangladesh have pointed out that delays in elections could benefit the unelected interim government, while radical groups may attempt to create disruptions by projecting India as a hostile actor. New Delhi has so far maintained a measured stance, despite remarks that directly question India’s sovereignty and territorial integrity, particularly in the northeastern region.

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