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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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India a critical anchor to maintain balance of power in regional security, says top US official

Speaking at the Shangri-La Dialogue, top US official Pete Hegseth praised India as a critical anchor holding the line in South Asia, noting its heavy industrial capacity to sustain high-end military operations.

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In a major statement highlighting the growing strategic alignment between Washington and New Delhi, top US official Pete Hegseth described India as a critical pillar of regional stability. Speaking on the second day of the Shangri-La Dialogue in Singapore, Hegseth noted that New Delhi’s ongoing military modernisation directly serves the shared objective of preserving a balance of power across the Indo-Pacific.

“In South Asia, India is a critical anchor to hold the line,” the top official said while addressing delegates from 44 nations. “A powerful India acting in its own self-interest advances our shared goal of maintaining a balance of power across the region.”

Growing logistics and maritime capabilities

The US administration heavily praised New Delhi’s defence industrial advancements, particularly highlighting its expanding operations in the Indian Ocean region. According to media reports, the official observed that India is modernising its armed forces to carry its share of the security burden in these crucial maritime corridors.

Furthermore, the official emphasized that New Delhi is successfully building out a heavy industrial and logistics capacity capable of sustaining high-end military operations. This expanding domestic infrastructure includes the ability to repair and maintain shared defence platforms, as well as supporting allied naval vessels operating forward in the regional theatre.

Strategic co-production and regional readiness

The partnership between the two nations is translating into tangible operational steps. The official revealed that Washington has firmly committed to pursuing joint production initiatives with New Delhi. Among these initiatives is the co-production of advanced capabilities, including Javelin anti-tank guided munitions, aimed at improving the collective readiness of their forces.

“This kind of industrial muscle isn’t just a long-term goal, it’s an immediate operational imperative,” the official stated, linking New Delhi’s defence manufacturing strength to a broader collective strategy.

Global defense spending and alliance priorities

The address also outlined Washington’s massive domestic military manufacturing mobilisation under President Donald Trump. Following a defence expenditure of USD 1 trillion last year, plans are underway for a historic generational investment of USD 1.5 trillion this year to expand military dominance and weaponry production at scale and speed.

While noting that relations between Washington and Beijing are currently better than they have been in many years, the official maintained that no state can be allowed to impose hegemony or compromise regional security.

Calling upon global partners to match this resolve, the administration indicated it expects allies to hit a defence spending target of 3.5 per cent of their GDP. Moving forward, Washington intends to prioritize and fast-track cooperation with “model allies”—defined as nations that are capable, clear-eyed, and ready to stand up for their national interests.

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Satellite images reveal extensive construction of launch pads and bunkers near Chinese nuclear missile silos

Satellite images show that Beijing is constructing a vast web of over 80 launch pads, command bunkers, and electronic warfare facilities to protect its longest-range nuclear missiles in a remote desert complex.

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A vast military complex is rapidly taking shape in a remote Chinese desert, raising significant attention among security scholars. Freshly analyzed satellite images indicate that Beijing is building an expansive network of launch pads, bunkers, and communications nodes. This critical infrastructure is positioned near isolated nuclear silos that house the Chinese military’s longest-range missiles, which are already capable of reaching any city in the United States.

Media reports indicate that the scale of this newly discovered construction points to a sweeping expansion of hardened infrastructure. The entire network is specifically designed to protect and operate China’s land-based nuclear forces. This massive buildup signals a major upgrade in efforts to secure a resilient second-strike capability, highlighting the intensifying nuclear competition with Western powers amidst rising regional tensions.

Protecting second strike capabilities

According to assessments by security analysts, the imagery reveals more than 80 launch pads. These pads are intended for potential use by an expanding fleet of mobile missile launchers as well as air-defense batteries. Furthermore, the newly built facilities appear configured to serve command operations, satellite communications, and electronic warfare functions.

Security experts note that this infrastructure is being deployed on a grand scale, stretching across thousands of square kilometers of desert landscape beyond the primary silo fields. Depending on the exact operational capabilities of these sites, the development represents a highly considerable enhancement and diversification of the nation’s strategic nuclear deterrent.

The primary objective behind safeguarding these desert silos aligns with the stated goal of maintaining a credible nuclear deterrent. This military policy remains grounded in the absolute capacity to retaliate effectively if the nation is struck first.

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Latest world news

US-Iran talks move closer as $300 billion investment proposal emerges

The United States and Iran are said to be nearing a preliminary agreement that could include sanctions relief, access to frozen Iranian assets, a Lebanon ceasefire framework and a proposed $300 billion reconstruction-linked investment plan.

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The United States and Iran are reportedly edging closer to a preliminary agreement that could temporarily ease tensions in the Middle East while opening the door for wider negotiations on Iran’s nuclear programme, sanctions relief and regional security.

According to reports, the evolving framework may include discussions around a proposed $300 billion reconstruction and investment mechanism for Iran if a final agreement is eventually reached. The proposal is said to involve international investment support facilitated with US backing.

Lebanon and Strait of Hormuz among major discussion points

One of the key elements under discussion reportedly concerns reducing hostilities involving Israel and Hezbollah in Lebanon. The issue has emerged as a sensitive component of the broader negotiations, especially amid continued military activity in the region.

The talks are also focused on restoring commercial shipping movement through the Strait of Hormuz, a globally significant energy corridor disrupted during the ongoing conflict. Reports suggest Iran may be expected to help restore safe maritime navigation, while the United States could gradually ease aspects of its blockade depending on progress during negotiations.

Sanctions relief and frozen assets under consideration

Negotiators are also reportedly discussing phased sanctions relief and potential access to billions of dollars in Iranian funds frozen abroad. Iran has long demanded the release of such assets as part of any broader understanding with Washington.

The draft understanding is also expected to include commitments related to Iran’s nuclear activities, including further negotiations on enriched uranium stockpiles and assurances linked to nuclear weapons development.

Key differences still remain unresolved

Despite signs of progress, several differences reportedly remain unresolved between the two sides. Questions continue over the exact wording of the proposed framework, the duration of any ceasefire arrangement and the timeline for easing restrictions in the Strait of Hormuz.

Reports also indicate that mediation efforts involving regional actors, including Pakistan and Qatar, have played a major role in facilitating indirect talks between Washington and Tehran.

While officials from both sides have signalled progress, no final agreement has yet been formally announced.

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