QuadrigaCX CEO’s Widow ‘Not Hiding Crypto From Creditors’

QuadrigaCX CEO death Gerald Cotten cryptocurrency creditors cold wallets

The wife of the former QuadrigaCX CEO has denied hiding cryptocurrency from the firm’s creditors, after asking a judge to appoint a restructuring specialist to oversee management at the embattled exchange.

Jennifer Robertson had been given a management role following the death of her husband, former CEO Gerald Cotten.

With as much as $136 million in crypto assets in cold wallets inaccessible in cold storage since his unexpected death, Robertson has attracted unwanted attention from investors struggling to recoup their funds.

In a filing before the Supreme Court of Nova Scotia, Robertson asked the judge to appoint Peter Wedlake of auditing giant Grant Thornton to handle the restructuring, saying neither she nor the firm’s other officer Tom Beazley had any “experience with an insolvent business.”

She also said her role as director had brought unwanted public scrutiny, and led to false accusations about her role in allegedly hiding cryptocurrency following her husband’s death.

“Further, the public attention my role as director has brought is unwanted, and online commentary which I have reviewed has suggested that I, in particular, am trying to hide assets or am acting contrary to the best interests of (Quadriga and its affiliates), which is not true.”

In the aftermath of the former CEO’s death, significant crypto holdings in cold wallets were discovered. However, the private keys were known only to the CEO and, to date, efforts to recover the keys have proved unsuccessful.

The firm has also applied for a further period of 45 to 60 days to try to recover the lost funds. However, lawyers acting on behalf of the firm’s creditors are calling on the court not to grant an extension and to commence criminal proceedings against the firm.

The mysterious circumstances around the death of the former QuadrigaCX CEO and the subsequent difficulties have done little to quell the suspicions of the firm’s creditors, many of whom depend on the firm recovering its lost assets to receive their money.

Regardless of the circumstances, the case is a reminder to cryptocurrency exchanges to keep appropriate records, and in particular to ensure effective crypto asset storage, to prevent funds being lost on this scale in future.