Economy

Man who reportedly died with crypto passwords, cleared accounts before dying

Man who reportedly died with crypto passwords, cleared accounts before dying”

Robertson has been in charge of managing the company's remaining assets and recovering any lost crypto since Cotten's death.

If you have been following our coverage of the QuadrigaCX fiasco, then you are familiar with what a very big mess the entire situation has become.

Gerald Cotten, 30, founder of online cryptocurrency exchange site QuadrigaCX, is reported to have died in December, taking the passwords to wallets containing C$180m ($137m, £105m) to the grave with him. But they were emptied out in April, months before Cotten's death was reported, "bringing the balances down to nil", audit firm Ernst & Young says. While Amazon has been forthcoming, a court order was required to address Cotten's personal account, since it wasn't created with the business named.

The investigators said they found other issues too, such as that Quadriga kept "limited books and records" and never reported its financials.

Latest update on the situation is that Jennifer Robertson is now demanding that the legal and managerial costs be repaid for the time that the exchange sought creditor protection from the Nova Scotia Supreme Court.

Those accounts "were internally created without a corresponding customer and used to trade on the Quadriga platform", Ernst & Young says, citing a company representative who also said deposits into some of those accounts "may have been artificially created and subsequently used for trading on the Quadriga platform". A Nova Scotia court threw the company a lifeline this week, granting it a 45-day extension that prevents creditors from filing lawsuits against it until mid-April. The report claims that the fact that QuadrigaCX had accounts on all those exchanges is established and proven and that at the time they were sent, the funds were worth over $100 million. That data is now stored in the cloud with Amazon Web Services - and it's under Cotten's name, not the company's.

Payment processors were also the subject of several orders since none have turned over any of the funds to the exchange or EY.

Meanwhile, a lawyer representing QuadrigaCX asked the Halifax court to appoint a chief restructuring officer to represent the company and potentially oversee a future sales process. The court documents also note that Robertson recently submitted an affidavit denying public accusations that she might try to hide assets. However, the repayment of Robertson for the $300,000 CAD ($225,000 USD) in the CAA process was ultimately deferred. There was also the chance of there being a conflict of interest given that Robertson was the executor of her late husband's estate.

When Robertson announced Cotten's death, she said he "died due to complications with Crohn's disease. while travelling in India, where he was opening an orphanage to provide a home and safe refuge for children in need".



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