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

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

FILE – A COVID-19 vaccine being prepared. (Olivia Sullivan/Sound Publishing)
B.C. seniors 80 years and older to get COVID vaccine details over next 2 weeks: Henry

Province is expanding vaccine workforce as officials ramp up age-based rollout

Interior Health reported 43 new COVID-19 cases in the region Feb. 23, 2021 and no additional deaths. (Jennifer Smith - Morning Star)
43 new cases of COVID reported in Interior Health

No new deaths, Williams Lake outbreak over

Students participating in an outdoor education experience in the Golden area during COVID-19. (Meg Langley photo)
Outdoor education project takes Golden’s students into nature

The program offers a way for students to learn in nature and safe from COVID

Symptoms can persist for weeks and even months after contracting COVID-19. (Dave Logan/For Peninsula Daily News)
What is considered a COVID recovery: the Physicians of Golden explain

A recovery is better explained as being “non-infectious” according to Larsen Soles.

This year’s Pink Shirt Day event will be held virtually with the Breakfast in a Box. (Okanagan Boys and Girls Clubs photo)
Pink Shirt Day 2021 kicks off with virtual event

“When you’re functioning from a place of kindness, there’s no way that bullying can exist.”

UBC Okanagan students are among the most food insecure in Canada, according to a new study by UBC.
(Phil McLachlan - Capital News)
UBCO students among most food insecure in Canada

42.3 per cent either can’t properly feed themselves, or are worried they will soon run out of money

NorKam secondary student Karis Wilson in the outfit that got her sent home from school on Tuesday, Feb. 23, 2021. (Contributed to Kamloops This Week)
B.C. teen in turtleneck, lace-edged dress sent home from school for ‘inappropriate’ outfit

NorKam secondary student Karis Wilson was told the lace on the garment made it look like a slip dress

COVID-19 testing at the Vernon Health Services Unit. (Jennifer Smith - Vernon Morning Star)
Two Vernon high schools exposed to COVID-19

Vernon Secondary and Seaton were sent home notices yesterday of exposure event

Vancouver Canucks left wing Antoine Roussel (26) tries to get a shot past Edmonton Oilers goaltender Mike Smith (41) during second period NHL action in Vancouver, Tuesday, Feb. 23, 2021. THE CANADIAN PRESS/Jonathan Hayward
Canucks cough up 3-0 lead, fall 4-3 to visiting Edmonton Oilers

Vancouver falls to 8-13-2 on the NHL season

Jessica McCallum-Miller receives her signed oath of office from city chief administrative officer Heather Avison on Nov. 5, 2018 after being elected to Terrace City Council. McCallum-Miller resigned on Feb. 22, 2021, saying she felt unsupported and unheard by council. (Black Press Media File Photo)
Terrace’s 1st Indigenous councillor resigns citing ‘systemic and internalized racism,’ sexism

McCallum-Miller said in a Facebook post she felt unheard and unsupported by council

Temporary changes to allow for wholesale pricing for the hospitality industry were implemented June 2020 and set to expire March 31.	(Pixabay photo)
Pubs, restaurants to pay wholesale prices on liquor permanently in COVID-recovery

Pre-pandemic, restaurateurs and tourism operators paid full retail price on most liquor purchases

Summerland has received conditional approval for $6 million in federal funding to build a one-megawatt solar array to provide power to the community. (Stock photo)
Summerland council reaffirms solar project in 4-3 vote

Coun. Richard Barkwill had earlier written letters in opposition to initiative

Most Read