Troubled Canadian cryptocurrency exchange QuadrigaCX has been granted a 30-day stay from creditors following a Feb. 5 bankruptcy hearing, but the late CEO's widow, Jennifer Robertson, faces mounting scrutiny as her affidavit is dissected by customers, experts, and conspiracy theorists.
Cotten's Death Sparks Conspiracy Theories
QuadrigaCX, once Canada's largest exchange by trading volume, filed for bankruptcy protection claiming that founder and CEO Gerald W. Cotten died in India on Dec. 9, 2018, without revealing keys to cold wallets holding CAD $190 million (~US $145 million). A Nova Scotia Supreme Court judge granted protection for up to 115,000 customers.
Skeptics allege the 30-year-old faked his death. A report in The Times of India confirms Cotten died on Dec. 9, and his widow obtained a death certificate and police clearance to repatriate his body. He was admitted to Fortis Escorts Hospital in Jaipur with septic shock, perforation, peritonitis, and intestinal obstruction, and died of cardiac arrest. He had Crohn's disease. However, without DNA confirmation, doubts persist. Cotten reportedly named his wife sole executor 12 days before his death and bequeathed properties to his in-laws.
A Widow's Fortune
Canadian broadcaster CBC revealed that Robertson's company acquired properties in Nova Scotia worth CAD $7.5 million (~US $5.6 million) over the past two and a half years. These assets may be seized to repay creditors under the administration of Ernst & Young.
Property records show Robertson and Cotten bought 16 properties between May 2016 and October 2018, ranging from CAD $94,000 for a waterfront lot to CAD $2.5 million for nine row houses. About a dozen are held by Robertson Nova Property Management Ltd. Robertson also owns two other properties, including an island in Mahone Bay purchased for CAD $162,000. She has used three surnames in recent years.
QuadrigaCX Holds Less Bitcoin Than Claimed
On social media, a cryptocurrency researcher claims the exchange had far less bitcoin than it claims to have lost, citing blockchain records showing outgoing transactions after Cotten's death. Another theory suggests the exchange used customer deposits to fulfill withdrawal requests, explaining delays. The company previously cited liquidity issues from lost wallet access. In her affidavit, Robertson stated her husband was the sole director and officer, and the business was conducted entirely by him. QuadrigaCX claims to have lost 26,488 BTC, 11,278 BCH, 11,149 BSV, 35,320 BTG, along with 199,888 LTC and 429,966 ETH.