Gerry Cotten, the late founder of fateful Canadian crypto exchange, QuadrigaCX, was allegedly funding the exchange with his own money while it was in litigation with the Canadian Imperial Bank of Commerce (CIBC). His widow, Jennifer Robertson, revealed details about the exchange’s financial situation in a statement published on March 13.
“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”.
In January 2018, the CIBC froze multiple accounts opened by QuadrigaCX’s payment processor because they were unable to identify the funds’ owners. Quadriga said that it had been unable to access $21.6 million of its funds. Judge Glenn Hainey of the Ontario Superior Court agreed with the bank that the owner of said funds was not established as he ruled in their favour.
Robertson’s Legal Firm Faces Conflict Of Interest
In the statement, Robertson also revealed that the legal firm currently representing the exchange, Stewart McKelvey, will cease its association with QuadrigaCX due to a conflict of interest.
“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to the attention of the Monitor since the start of the CCAA [Companies’ Creditors Arrangement Act] process, they have withdrawn from representing QuadrigaCX (QCX) and the other applicant companies in the CCAA process”.
She added that “details of such information from the Monitor has not been disclosed to me”.
Earlier this month, Robertson came under fire after asking the court for $225,000 as compensation for legal costs. After $190 million in crypto assets went missing following Cotten’s sudden death, Robertson provided provisional financing for legal proceedings.
Her statement reads: “I was willing to and did step up to try and preserve and maintain the business. I took direction and advice from its main contractors, and its then lawyer, utilized my own funds to keep it afloat, agreed to and paid for an experienced investigator to try and recover its assets, and then initiated the CCAA process which led to EY’s appointment as Monitor”.