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

Surrey councillors wary of ‘streamlining’ environmental development permits process

Mayor Doug McCallum notes B.C. government only agency that can issue environment permit

Lost season ‘disappointing’, but White Rock Renegades eager to play outside competition

South Surrey softball organization president hopes inter-city play is a few weeks away

City buys century-old East Delta church

St. Stephen’s Church to be renovated and restored, used as community services and programming space

Oh baby, what a birthday gift: $2.8M raised to help Surrey boy with rare disease

‘We are very thankful to everybody,’ Aryan Deol’s father says

COVID-19 exposure at Surrey rave prompts warning from Fraser Health

Party was held at Royal Beauty Supply in Whalley

B.C. records 30-50 new COVID-19 cases a day over weekend, no new deaths

Many of those testing positive were identified by contact tracing for being linked to other confirmed infections

Five B.C. First Nations call out Canada for ‘discriminatory’ food fish practices

West Coast nations say government ignoring court-won right to chinook and coho

Salmon arrive in larger numbers at Big Bar landslide

Arrival follows historic hihg-water levels that halted migration runs

Rent-relief program becomes new front in fight between Liberals, opposition

Opposition trying to draw parallels between decision to have Canada Mortgage and Housing Corp. run program and the WE controversy

Ottawa sets minimum unemployment rate at 13.1% for EI calculation

Statistics Canada says the unemployment rate was 10.9 per cent in July

$45K in donations received after couple’s sudden death in Tulameen

Sarah MacDermid, 31, and Casey Bussiere, 37, died August long weekend

Famous Yukon-based bhangra dancer brings movements of joy to Long Beach

Internet-famous dancer is exploring Vancouver Island, visiting the B.C. Legislature and more

Battle of Fairy Creek: blockade launched to save Vancouver Island old-growth

‘Forest Defenders’ occupy road to prevent logging company from reaching Port Renfrew-area watershed

Most Read