Interested parties attend Nova Scotia Supreme Court as Canada’s largest cryptocurrency exchange seeks creditor protection in the wake of the sudden death of its founder and chief executive in December and missing cryptocurrency worth roughly $190-million, in Halifax on Tuesday, Feb. 5, 2019. THE CANADIAN PRESS/Andrew Vaughan

Lawyers for QuadrigaCX clients request exhumation of late founder’s remains

Gerald Cotten, who ran the exchange from his home outside of Halifax, died suddenly in December 2018

Lawyers for clients who lost millions in the bankruptcy of the QuadrigaCX cryptocurrency exchange have formally asked the RCMP to exhume the remains of the firm’s founder.

In a letter posted to its website Friday, Toronto-based law firm Miller Thomson LLP asks the RCMP’s Commercial Crimes Branch to conduct an autopsy on the body of Gerald Cotten to confirm both its identity and the cause of death.

The letter says there is a need for certainty around the question of whether “Mr. Cotten is in fact deceased” and it asks that the exhumation process be completed by the spring of 2020.

Cotten, who ran the exchange from his home outside of Halifax, died suddenly in December 2018 while travelling in India.

As the company’s CEO and sole director, he was the only one who had access to the so-called cold wallets that were supposed to hold his customers’ cryptocurrency.

More than 76,000 unsecured creditors, virtually all of them QuadrigaCX clients, came forward to claim they are owed $214.6 million — $74.1 million in cash and $140.5 million in cryptocurrency.

ALSO READ: Widow of QuadrigaCX founder to hand over most assets in settlement

In a emailed statement, Richard Niedermayer, lawyer for Cotten’s widow Jennifer Robertson, said she is “heartbroken” to learn of the exhumation request.

“Gerry died on Dec. 9, 2018 in India,” the statement says.

“It is not clear how the exhumation or an autopsy to confirm the cause of Gerry’s death from complications arising from his Crohn’s disease would assist the asset recovery process further.”

In a settlement announced in October, Robertson and Cotten’s estate agreed to return about $12 million in assets to help repay users of the exchange. The assets included properties in Nova Scotia and British Columbia, a small aircraft, “luxury vehicles,” a sailboat, investments, and cash, along with gold and silver coins.

Creditor monitor Ernst and Young found in an investigation that the exchange had flawed financial reporting and that significant volumes of cryptocurrency had been transferred to personal accounts controlled by Cotten. It found losses from trading and fees in those accounts affected QuadrigaCX’s reserves, while Cotten also created fake accounts to inflate revenue figures.

In a statement released at the time of the settlement, Robertson said that she wasn’t aware of how her husband operated the business, or his appropriation of users funds.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Email news@ahobserver.com
LETTER: No adequate response to mining issue

The Friends of Agassiz and Harrison Hot Springs pen an open letter

Signs at a new COVID-19 testing and collection centre at 14577 66th Ave. in Surrey. It was relocated from an urgent primary care centre near Surrey Memorial Hospital. This new centre allows for up to 800 tests per day, which is 550 more than the previous centre, according to Fraser Health. (Photo: Lauren Collins)
More than 200 new COVID-19 cases linked to Fraser Health region: Dr. Henry

Provincial health officer appeals to people to keep gatherings small

Chilliwack-Kent 2020 provincial election candidates, clockwise from bottom left, Kelli Paddon (NDP), Eli Gagne (Libertarian), Jeff Hammersmark (Green), Jason Lum (Independent), and Laurie Throness, who began the campaign as a BC Liberal but left the party on Oct. 15. (Submitted)
OPINION: Every vote counts with election uncertainty in Chilliwack and Chilliwack-Kent

For the first time in a long time there could be very close races in both local ridings

Jodie Fedun said her brother Jarrett Whitford hasn’t been heard from since early September, and his bank card was last used in Hope. (Submitted/Facebook photo)
Police spot missing Alberta man on video, in Hope

Family have not heard from Jarrett Whitford, 31, since early September

Someone needs a manicure? The She Devil pursues Jvck Wilde in a cinematic music video about struggling with mental illness. (Submitted photo)
Chilliwack hip-hop artist Jvck Wilde produces She Devil music video

Dark, chilling and very cinematic, Wilde produces a gripping video on a tight budget

Actor Ryan Reynolds surprised a Shuswap family with a special birthday message to their son who was worried he’d be alone on his 9th birthday on Nov. 24. (Tiffanie Trudell/Facebook)
Ryan Reynolds text almost gives away Shuswap boy’s birthday surprise

Deadpool actor helps remind eight-year-old Canoe resident he’s not alone

Vancouver police reactivated the search for Jordan Naterer Thursday Oct. 22. Photo courtesy of VPD.
Mom of missing Manning Park hiker believes her son is waiting to come home

‘He’s going to come out of a helicopter and say ‘what took you so long?”

Environment Minister George Heyman, Premier John Horgan and Energy Minister Michelle Mungall announce that B.C. Hydro is proceeding with construction of the Site C dam, Dec. 11, 2017. (Tom Fletcher/Black Press)
Site C actions, costs won’t be known until after B.C. election, Horgan says

Peace River diverted for construction of reinforced dam base

One of the squirrels who ended up having their tails amputated after getting them stuck together with tree sap. (Facebook/Wild ARC)
Squirrels recovering from tail amputation after sap situation near Victoria

BC SPCA Wild ARC says squirrels will be released back into wild, fifth sibling was euthanized

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Most Read