Widow of Late QuadrigaCX Founder Claims Husband Funded User Withdrawals

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Jennifer Robertson, the widow of the late CEO of the embattled Canadian crypto exchange QuadrigaCX, claimed that her husband Gerald Cotten used to fund the now-defunct exchange after the Canadian Imperial Bank of Commerce (CIBC) froze QuadrigaCX’s fiat holdings last year over its questionable origin.

As Jennifer Robertson explained in a statement released by law firm Stewart McKelvey:

“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.”

Furthermore, Robertson also stated that Stewart McKelvey will, from thereon, be withdrawing as the crypto exchange’s legal representative over unspecified conflict of interest recently raised by QuadrigaCX’s court-appointed monitor Ernst & Young (EY).

As Robertson stated:

“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a result of information which has come to the attention of the Monitor since the start of the CCAA process, they have withdrawn from representing QuadrigaCX (QCX) and the other applicant companies in the CCAA process.”

In late January, QuadrigaCX filed for creditor protection before the Nova Scotia Supreme Court following Cotten’s untimely death which left over 115,000 users locked out of their digital assets worth roughly $140 million, stored in QuadrigaCX’s cold wallet to which only Cotten had access.

As legal proceedings progress, the Nova Scotia Supreme Court has appointed EY as QuadrigaCX’s monitor to supervise the exchange’s attempt to recover the missing user funds.

While EY has so far been making progress in securing the exchange’s fiat holdings from multiple third-party payment processors, the monitor noted that it has yet to recover the majority of the missing digital assets.

Per a previous Coinwire report published March 5, EY has released its latest monitoring report, noting that six of QuadrigaCX’s Bitcoin cold wallet addresses have been drained since 2018, sparking speculations whether or not the missing digital assets are still kept in the exchange’s cold storage.