Widow of QuadrigaCX founder to hand over most assets in settlement

Online exchange, which launched in 2013 and grew to become one of Canada’s largest with 363,000 customers

The widow of the founder of QuadrigaCX has agreed to hand over most of her assets in a settlement reached as part of bankruptcy proceedings for the now defunct cryptocurrency exchange.

The settlement says Jennifer Robertson and the estate of her late husband, Gerald Cotten, are to return about $12 million in assets to help repay users of the exchange. Those assets include properties in Nova Scotia and British Columbia, a small aircraft, “luxury vehicles,” a sailboat, investments, and cash, along with gold and silver coins.

The funds are only a fraction of the $214.6 million in cash and cryptocurrency that more than 76,000 unsecured users have claimed following the collapse of the exchange after Cotten’s death last December.

The online exchange, which launched in 2013 and grew to become one of Canada’s largest with 363,000 customers, offered a platform for trading and storing digital assets like Bitcoin, Litecoin and Ethereum.

The exchange was already facing liquidity issues before the death of Cotten, who was chief executive and sole director, but employees found they were unable to locate or access most of the cryptocurrency assets after he died.

An investigation by creditor monitor Ernst and Young found 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 on QuadrigaCX to inflate revenue figures.

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

ALSO READ: QuadrigaCX founder transferred customers’ funds to his own accounts: report

“I had no direct knowledge of how Gerry operated the business prior to his death, and was not aware of his improper actions in managing the QuadrigaCX business.”

The monitor said that to its knowledge, neither Cotten nor Robertson had material sources of income other than funds received from QuadrigaCX, though neither reported income from the company on tax returns in recent years.

Robertson said that she has agreed to return assets she thought were purchased with legitimately earned proceeds from the company.

“I was upset and disappointed with Gerry’s activities as uncovered by the investigation when I first learned of them, and continue to be,” she said.

Robertson will be able to keep about $90,000 in cash, $20,000 in retirement savings, a Jeep, and some jewelry and furnishings as part of the settlement.

The assets handed over by Robertson will add to the roughly $32 million in cash plus $1 million in cryptocurrency that Ernst and Young has already recovered from QuadrigaCX.

Robertson said she hopes the settlement will allow users to be repaid as much as possible while keeping fees as low as possible.

“I believe this settlement is a fair and equitable resolution for QCX and the affected users…in return, this settlement will allow me to move on with the next chapter of my life.”

Ian Bickis, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

No parole for 12 years for Burns Lake man convicted of second degree murder

Judge said he did not believe Albert Giesbrecht’s claim his gun discharged accidentally

No parole for Giesbrecht until 2031

Justice David Crossin said he did not believe Giesbrecht’s claim his firearm discharged accidentally

Lakes District Community choir performs

The Lakes District Community Choir presented its annual Christmas Concert on Dec.… Continue reading

Happy 100th Birthday Helen

Helen Hiebert celebrated her 100th birthday. On Dec. 6 there was an… Continue reading

Practice makes perfect

Girls hockey players hold a practice in the Tom Forsyth Arena in… Continue reading

VIDEO: Success of wildlife corridors in Banff National Park has advocates wanting more

Demand for more highway protection escalated after seven elk were killed by a semi-trailer near Canmore

B.C. VIEWS: Hunger does not end with the season

Despite innovations in food distribution, the need is still there in B.C. communities

Sharks beat Canucks 4-2 to snap 6-game skid

Vancouver visits Vegas on Sunday

Fans sing Canadian anthem after sound system breaks at BMW IBSF World Cup

The Canadians in attendance made sure their team and flag were honoured on the podium

VIDEO: Fire destroys Big White Ski Resort chalet

Social media eulogies peg the property, nicknamed “The Pharamacy,” as both loved and hated

Prince George RCMP use bait packages to catch porch pirates over the holidays

First-in-Canada program with Amazon looks to combat parcel theft

Nanaimo mechanical engineer creates thief tracking program

Nanaimo Thief Tracking lets users plot and share information about thefts online

Mayor wants B.C. to institutionalize severely mental ill people who are homeless

Those suffering from mental health conditions, such as schizophrenia, need specialized care, mayor says

Most Read