QuadrigaCX Case Becomes Even More Complicated

Rafael Augusto B.L. de Oliveira | @ancient_scrolls

It seems that the more we dig into the QuadrigaCX incident the more suspicious the situation appears. Now, Jennifer Robertson, the wife of QuadrigaCX’s CEO, Gerald Cotten, is claiming that he was using his own money to cover the company costs. After the Canadian Imperial Bank of Commerce questioned the legality of his wealth in 2018, they put his fiat funds on hold.

In a statement put out by Stewart McKelvey, a law firm that is currently representing Mrs. Robertson and Quadriga CX interests, the widow said:

“While I had no direct knowledge of how Gerry operated the business, he told me that he had been putting his own money back into QCX to fund user withdrawals in 2018 while the CIBC money remained frozen. I believe Gerry had the best interests of the business in mind and cared for his customers.”

Law firm Stewart McKelvey Withdraws

Steward McKelvey law firm will be obligated to distance themselves from the case, due to a conflict of interest not made public by QuadrigaCX’s court-appointed monitor Ernst & Young (EY).

“I have been advised by Stewart McKelvey that, in light of concerns regarding a potential conflict of interest that have been raised as a result of information which has come to the attention of the Monitor since the start of the CCAA process, they have withdrawn from representing QuadrigaCX (QCX) and the other applicant companies in the CCAA process.” – Jennifer Robertson

What happened to QuadrigaCX?

QuadrigaCX was forced to file for creditor protection in late January due to their CEO and founder passing away. The company alleges that they were locked out of their own cryptocurrency reserves after CEO Gerald Cotten’s death. He had been the only person with the company passwords. This issue resulted in the company being unable to continue its operations as a crypto exchange service.

Legal Updates

Ernst & Young (EY), QuadrigaCX’s court-appointed monitor, recently announced that it has made some progress in securing fiat holdings from third-party payment processors. However, they are yet to locate any of Gerald Cotten’s crypto funds. Interestingly enough, QuadrigaCX has recently stumbled into another dead-end, six bitcoin cold wallet addresses, that were once used by them, were empty. This raises even more questions than answers to this mystery.

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