Missing Digital Assets

Update: Current Status Of The QuadrigaCX Controversy

If you have been following our coverage of the QuadrigaCX fiasco, then you are familiar with what a gigantic mess the entire situation has become. It’s a PR nightmare for the exchange and an actual hell for all the investors who still have no assurance that they will get their money back.

Latest update on the situation is centred around the deceased CEO Gerald Cotten’s wife, Jennifer Robertson. After Gerald passed away in India in December 2018, due to Crohn’s disease, the exchange is being managed by Jennifer and with her father-in-law, Tom Beazley. Both of them are members of the Board of Directors.

When the largest exchange in Canada could not return the investors their money back, an expected backlash came from the entire crypto community. People started threatening Jennifer, even though she had no way to access the private keys that her husband had taken to his grave.

Cotten was supposedly the only person who had access to the passphrase for the cold wallets, which contained all the digital assets. Post his death, the exchange lost all access to customer funds stored in those wallets. It was approximately $190 million worth of crypto that the exchange had been locked out of.

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. She claims to have provided “interim financing” for this legal process, which was around $224,212. With the court’s assistance, Robertson is looking to have this sum repaid to her.

A report on the same by Bloomberg stated:

“A cashflow report signed by Robertson on March 1 projects C$1.1 million in disbursements from March 2 to March 8, including C$300,000 for “repayment of shareholder advances” as the biggest single amount. Other costs include C$200,000 for Ernst & Young and C$250,000 for its lawyers, C$229,842 for Quadriga’s law firm and C$17,000 for independent contractors.”