- Jennifer Robertson, the widow of the late QuadrigaCX CEO has said in a new statement that the CEO had used his own money to fund the exchange
- This took place when the company accounts were frozen by the CIBC
- She also revealed their legal representation has withdrawn their services
One of the biggest ongoing cases in the cryptocurrency space today is that of QuadrigaCX. It was revealed earlier this year that the exchange was unable to access over $190 million of their customers’ funds because they were locked away in a cold wallet that only their deceased CEO Gerald Cotten had access to. As soon as this came out, there were accusations of an exit scam and even fake death conspiracies.
Now, more facts are being revealed about the case, such as the fact that Cotten had been funding the exchange with his personal money in 2018 while they were in litigation with the Canadian Imperial Bank of Commerce.
This information was shared by Jennifer Robertson, Cotten’s widow in a March 13, 2019 statement.
Robertson is also seeking reimbursement for the funds she spent in helping the exchange acquire creditor protection from Canadian courts. At the time, the exchange had five of their accounts which held $21.6 million frozen and were in a tight spot.
Her statement reads:
“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.”
The reason the accounts had been frozen was due to an inability to identify the owners of the funds by their payment processor Costodian Inc., and its owner, Jose Reyes.
After freezing the funds, the Canadian Imperial Bank of Commerce then asked the courts to determine whether the funds belonged to the exchange, their custodian or their customers.
QuadrigaCX argued that the funds belonged to them and that the whole issue was a misunderstanding.
Robertson also made it known that QuadrigaCX’s Legal Representatives have withdrawn their services due to a conflict of interest.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to the attention of the Monitor since the start of the CCAA [Companies’ Creditors Arrangement Act] process, they have withdrawn from representing QuadrigaCX (QCX) and the other applicant companies in the CCAA process.”