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Gerald Cotten, founder and CEO of QuadrigaCX, used his own cash to reassure his clients in a court battle against a bank, said his widow.
Jennifer Robertson, wife of Cotten and executor of her estate, said in a statement sent Wednesday to CoinDesk that Cotten had told him that he was putting his own funds on the stock exchange after the Canadian Imperial Bank of Commerce (CIBC) had frozen its assets in fiat in 2018 as a result of questions about their origin.
In the statement sent by Stewart McKelvey law firm, she said:
"Even though I did not know directly how Gerry ran the business, he told me that he had reinvested his money in QCX to fund user withdrawals in 2018," he said. money remaining at this moment blocked. I believe Gerry had the best interests of the company in mind and cared for his clients. "
Roberston also stated that Stewart McKelvey would withdraw from the trading of the exchange following the discovery of an undisclosed conflict of interest by QuadrigaCX's court-appointed monitor, Ernst & Young (EY).
In the statement, Robertson says:
"Stewart McKelvey informed me that, given concerns about a potential conflict of interest caused by information brought to the attention of the controller since the start of the CCAA process, they withdrew from the file. . QuadrigaCX representative (QCX) and other applicant companies in the CCAA proceedings. "
The statement added that "the details of this controller information have not been disclosed".
Missing funds
Quadriga filed for creditor protection at the end of January, claiming that after Cotten's death she could no longer access nearly $ 140 million worth of cryptocurrency and could not send funds to some 115,000 customers.
The Nova Scotia Supreme Court designated EY to oversee the exchange, which allowed it to oversee and facilitate Quadriga's efforts to recover some of the missing funds.
To date, EY has announced that while some progress has been made in securing Quadriga's fiat holdings with various third-party payment processors, it has not yet been able to locate more than a fraction of his encrypted holdings.
Perhaps most noteworthy is the fact that Quadriga reported using six empty addresses in the portfolio, raising questions about whether the exchange still has one of the missing cryptocurrencies.
Image of Judge Michael Wood via the Supreme Court of Nova Scotia
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