Lawyers for QuadrigaCX clients officially ask RCMP to exhume body of founder Gerald Cotten
Stuart Peddle (speddle@herald.ca)
Updated: Dec 16, 2019 at 12:01 p.m.
After Gerald Cotten died, his company, QuadrigaCX, entered bankruptcy proceedings. Those proceedings have "identified several instances in which funds may have been used inappropriately." - Facebook
Lawyers for clients who lost millions through the bankrupt cryptocurrency exchange QuadrigaCX have officially asked the RCMP to exhume the remains of the firm's founder to confirm they are indeed those of Gerald Cotten.
The Fall River man died in 2018 in India at the age of 30, taking with him the access codes for about $190 million in investments allegedly stored in encrypted "wallets" on Cotten's laptop, some of which have since been found to be empty.
More than 110,000 customers of the online exchange were owed more than $250 million in cash and digital currency.
Toronto-based law firm Miller Thomson LLP sent notice to the RCMP's commercial crimes branch Friday. A copy of the letter was shared online.
"The purpose of this letter is to request, on behalf of the affected users, that (RCMP) conduct an exhumation and post-mortem autopsy on the body of Gerald Cotten to confirm both its identity and the cause of death given the questionable circumstances surrounding Mr. Cotten's death and the significant losses of affected users," the letter says.
The letter goes on to ask that the entire process be completed by the spring of 2020.
In a report submitted to the Nova Scotia Supreme Court this summer, Ernst & Young, the court-appointed bankruptcy monitor in the QuadrigaCX case, said it had identified several inappropriate uses of funds, including using customer funds to pay Quadriga operating costs without tracking and for transactions on other exchanges, as well as transferring funds to personal accounts.
Sarah Shields, spokeswoman for Ernst & Young, said Friday the firm could not comment.
Gregory Azeff, the lead lawyer on the letter, did not return requests for comment.
Richard Niedermeyer, lawyer for Cotten's widow, Jennifer Robertson, emailed media a statement Friday afternoon on the development.
"My client, Jennifer Robertson, the wife of Gerald (Gerry) Cotten and executor of his estate, is heartbroken to learn of this request," the email said.
"Gerry died on Dec. 9, 2018, in India. An independent investigation by the Globe & Mail confirmed this earlier this year, and it should not be in doubt. While Ms. Robertson has assisted the Quadriga affected users in the recovery of assets, and has co-operated fully with Ernst & Young's investigation, 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."
Cotten's assets were frozen, as were the majority of those of Robertson, Seaglass Trust, Robertson Nova Consulting Inc., and Robertson Nova Property Management Inc.
Those assets have been estimated at about $12 million.
Ontario RCMP spokeswoman Sgt. Penny Hermann said the force cannot answer questions related to the case because the matter is still under investigation.
With files from Ian Fairclough
QuadrigaCX may have directed client funds to personal accounts
QuadrigaCX moves into bankruptcy
QuadrigaCX CEO's wife questioned over access to bitcoins
Indian death certificate scams fuel skepticism around QuadrigaCX CEO's death
QuadrigaCX founder left $9.8m in personal property, over a million in Nova Scotia
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