Jennifer Robertson Returns $9M to QuadrigaCX Traders
Gerald Cotten’s widow, Jennifer Robertson, will distribute $9 million from previously held funds to reimburse QuadrigaCX traders.
The creditors of QuadrigaCX will gain access to another $9 million from the estate of Jennifer Robertson, the widow of the exchange’s late founder. Gerald Cotten, who died in India at the end of 2018, left an accounting mess, untangled over a year by Ernst&Young.
The investigations revealed that Cotten did not possess large-scale crypto wallets as previously suggested. Additionally, the audits and bankruptcy procedures saw links between the finances of QuadrigaCX and the personal spending of Robertson and Cotten.
Robertson cooperated with the legal procedings, while paying for some of the investigations. Now, she has reached a voluntary settlement, providing her own funds to settle the claims of QuadrigaCX creditors.
Robertson also claimed she was not aware of the mixing of personal and exchange funds, and at one points held assets that she believed were legally disbursed as salaries and dividends.
“As I have indicated throughout this proceeding, I had no direct knowledge of how Gerry operated the business prior to his death, and was not aware of his improper actions in managing the QuadrigaCX business as outlined by the Monitor in its 5th report in June. Specifically, I was not aware of nor participated in Gerry’s trading activities, nor his appropriation of the Affected User’s funds,” explained Robertson in her settlement notice.
The liquidation procedure that ran for the better part of 2019, discovered only a fraction of the lost funds. The investigators only located about 104 BTC, and managed to unlock partial bank accounts. The total losses of QuadrigaCX were estimated at about $140 million.
QuadrigaCX was a rather active market, which offered fiat services to Canadian or US-based traders. This is one of the reasons the exchange led to deep personal losses, as traders attempted to liquidate their funds.
QuadrigaCX operated for about a month after the reported death of Cotten in India. During that time, the exchange still received deposits. The market operator also showed links to Kraken, where some of the funds may have been liquidated. Kraken offered a reward to guess the whereabouts of the funds, but so far, the missing BTC and altcoins were not discovered.