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

Snuneymuxw artist brings aquatic designs to Nanaimo’s Beban Park pool

Work by artist Eliot White-Hill is being installed at the pool this month

Event was virtual, recognition was real at Nanaimo Business Awards

Online event praised Nanaimo businesses and organizations for excellence in 21 award categories

Nanaimo-Ladysmith school trustees receive assignments for year

School trustees appointed to Nanaimo-Ladysmith-area schools

Best of the City: This year’s winners

Nanaimo News Bulletin presents full results of our 2020 Best of the City readers’ survey

Best of the City: This year’s winners

Nanaimo News Bulletin presents full results of our 2020 Best of the City readers’ survey

Beefs & Bouquets, Sept. 23

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail editor@nanaimobulletin.com

B.C. Green leader says NDP abandoning environmental plan

Horgan’s claim of unstable government false, Furstenau says

‘Won’t be gathering for Thanksgiving:’ Trudeau says COVID-19 2nd wave underway

In all, COVID-19 has killed about 9,250 people in Canada

Canada’s active COVID-19 cases top 10,000 as daily new cases triple over the past month

Dr. Tam repeated her warning to young people, who have made up the majority of recent cases

First 8 months of fatal overdoses in B.C. have now exceeded 2019 death toll

Nine people died every two days in August, BC Coroners Service data shows

City reviewing plans for huge Sandstone project in south Nanaimo

Seacliff Properties says it’s been told to be ready for a public hearing this fall

Transgender B.C. brothers debut fantasy novel as author duo Vincent Hunter

‘Transgender people are being misrepresented in popular fiction and media, and we aim to change that’

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Most Read