- March 5, 2019
- Posted by: giancarlo
- Category: News
The widow of the founder of controversy-embroiled Canadian exchange QuadrigaCX has asked the court for US $225,000 to compensate for legal expenses. This comes via a Bloomberg report published yesterday.
Jennifer Robertson, the wife of the late Quadriga founder, Gerald Cotten, is the seeking reimbursement for payments associated with the legal proceedings surrounding the exchange, as well as other payments made to keep the company afloat. After Cotten’s sudden death on a trip to India, $145 million worth of cryptoassets belonging to Quadriga went missing. Robertson reportedly provided CA $300,000 (US $225,000) worth of financing for the appointment of Big Four audit and financial services firm Ernst & Young (also known as EY), as well as the filing for creditor protection under the Companies’ Creditors Arrangement Act (CCAA), and the appointment of new directors to the company. Quadriga is currently run by Robertson and her step-father, Tom Beazley.
Although the matter of repaying Robertson was discussed in court, Cox & Palmer, the law firm representing Quadriga’s users who lost money in the exchange’s demise, is claiming the reimbursement should wait. In a letter filed to the court, the firm made the case that repayment should not be made until Ernst & Young has fully reviewed all asset and transaction information from Cotten’s estate. The letter states:
“In our submissions, the repayment contemplated by the cash flow is inappropriate until such time as the Monitor has reviewed the requested information and satisfied itself as to the source of funds used to fund the CCAA Proceeding.”
According to a Toronto Star article published earlier today, Canada Supreme Court Justice Michael Wood has extended the proceedings until April 23rd — 45 days from today — and has approved the appointment of a chief restructuring officer to Quadriga. Justice Wood also directed EY to ensure that fees for its services would not be “out of control.”
Last week, EY found that Quadriga’s cold wallets have not only been empty, but also unused since 2018. Potentially offering some clarification, a report released last week by crypto research firm ZeroNonCense found that Quadriga stored a substantial amount of its Ether (ETH) on other crypto exchanges.