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An official statement from Jennifer Robertson, the widow of QuadrigaCX founder Gerald Cotten, confirms that she will hand over more than $9 million to compensate the users of the now-defunct crypto exchange.
Jennifer Robertson, the widow of QuadrigaCX founder Gerald Cotten, has confirmed that she will hand over more than $9 million (12 million CAD) in assets. She has made this move to compensate the users of the now-defunct crypto exchange. The assets will be transferred to EY Canada, the bankruptcy trustee for the defunct exchange.
On October 7, Robertson announced in a personal statement explaining that she will transfer the vast majority of her estate assets. These assets were previously valued at about $9 million. Robertson announced this move stating that since her husband’s death in 2018, she made ‘every effort’ to help in the recovery of QuadrigaCX’s assets.
After Robertson and other Quadriga-affiliated entities noted that they had no access to the company’s cold wallets, the exchange folded. Since then, they could not gain access to any of the crypto assets the exchange held. A subsequent investigation by EY raised fears as to whether the exchange held any customer funds at the time of Cotten’s death.
The Big Four audit firm was the bankruptcy trustee of QuadrigaCX during its insolvency hearings. In the statement, Robertson explained:
“I have now entered into a voluntary settlement agreement where the vast majority of my assets and all of the Estate’s assets are being returned to QCX to benefit the Affected Users. These assets originally came from QCX in the direction of Gerry.”
Robertson believed that all her assets came about from her husband’s legitimately earned profits, salary, and dividends, adding:
“I was upset and disappointed with Gerry’s activities as uncovered by the investigation; when I first learned of them, and continue to be as we conclude this settlement.”
QuadrigaCX Audited by Canada Revenue Agency
Reports that emerged in September 2019 revealed that QuadrigaCX is being audited by the Canada Revenue Agency which is the country’s tax authority. The Agency requested tax returns from Oct. 1, 2015, to Sept. 30, 2018.
The exchange has engaged in unending legal battles with its creditors over the past year. As we published earlier, lawyers want to sell the exchange’s assets to compensate users since its cold wallets are reportedly inaccessible. Some of the creditors have wildly speculated about the fate of the lost crypto. Some even wonder whether Cotton is even dead.
The settlement is currently pending approval from a judge and according to the new EY Canada report, Robertson will be turning over all assets. She will turn over some jewelry, cash, clothing, personal furnishings, retirement savings, and a 2015 Jeep. Robertson will also hand over some of the outstanding shares of Quadriga and affiliated entities. She will only remain with roughly $162,700 in personal assets.
A previous report had estimated Cotten estate’s total value to stand at roughly $9 million. That includes over 12 properties in Nova Scotia and luxury vehicles. EY wants to liquidate these assets to compensate Quadriga’s stakeholders and users who lost funds when the exchange collapsed.
October 7’s report confirmed that a settlement enabled the involved parties to avoid legal fees that would arise through litigation. Moreover, Robertson will no longer get any payments under a previous court order as part of the settlement. She added that she had “no direct knowledge” of how Quadriga operated.
Robertson is also reportedly unaware that Cotton had commingled client and corporate funds as discovered later by EY. She commented:
“Specifically, I was not aware of nor participated in Gerry’s trading activities, nor his appropriation of the Affected User’s funds.”
This latest report further added that Robertson wanted a settlement offer that the auditor published its earlier report in June 2019. She will offer a sworn statement detailing the assets she still owns. It will also include the assets owned by the estate in the last 5 years as part of the settlement. The new agreement could become voided if Robertson fails to disclose any of the earlier mentioned assets.
In a public Telegram post, the court-appointed representative counsel for the exchange’s users, Miller Thomson lawyer Asim Iqbal, stated that the law firm will decline to offer any additional comments.