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

HALIFAX — 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.

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.

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

Just Posted

Dems say oust Trump or he’ll betray again; ‘He is who he is’

WASHINGTON — Closing out their case, House Democrats warned Friday in Donald… Continue reading

Senators may have to rein in activism in minority Parliament: new govt rep

OTTAWA — Independent senators may have to curb their enthusiasm for amending… Continue reading

Alberta woman charged with child abduction pleads guilty to lesser charge

LETHBRIDGE, Alta. — A woman in southern Alberta who was charged with… Continue reading

Alberta landowners urge farmers to cut power to wells with unpaid debts

A group of Alberta landowners is asking farmers and ranchers to fight… Continue reading

‘A little love can go a long way,’ says a Red Deer opioid user who supports overdose prevention

The OPS means higher survival rates and less needle debris, he adds

Fashion Fridays: The basics you need for your body type

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Your community calendar

Jan. 22 Downtown House Senior Center (5414 43 St.) in Red Deer… Continue reading

Shots from stands, women’s 3-on-3 highlight NHL skills event

ST. LOUIS — Shooting pucks from the stands and some of the… Continue reading

Canada beats U.S. in 3-on-3 women’s game at NHL all-star skills competition

ST. LOUIS — Melodie Daoust and Rebecca Johnston scored to give Canada… Continue reading

Lowry, Siakam lead Raptors past Knicks for 6th straight win

Raptors 118 Knicks 112 NEW YORK — Kyle Lowry scored 26 points,… Continue reading

Dems say oust Trump or he’ll betray again; ‘He is who he is’

WASHINGTON — Closing out their case, House Democrats warned Friday in Donald… Continue reading

Senators may have to rein in activism in minority Parliament: new govt rep

OTTAWA — Independent senators may have to curb their enthusiasm for amending… Continue reading

Alberta woman charged with child abduction pleads guilty to lesser charge

LETHBRIDGE, Alta. — A woman in southern Alberta who was charged with… Continue reading

Alberta landowners urge farmers to cut power to wells with unpaid debts

A group of Alberta landowners is asking farmers and ranchers to fight… Continue reading

Most Read