QuadrigaCX granted creditor protection - but did it ever actually have $145 million?

Daniel Fowler
February 10, 2019

Fortis Escorts Hospital located in a city of Jaipur in India has released more information about the death of Gerald Cotten, CEO of QuadrigaCX, as reported by CoinDesk.

According to Reuters, the BCSC was aware of Quadriga since 2017.

Gerald Cotten, a Nova Scotia resident originally from Ontario, was 30 years old when he died suddenly while travelling in India on December 9 - leaving his virtual company, QuadrigaCX, without access to $180 million in Bitcoins and other digital assets.

According to Bloomberg Brian Kladko, a spokesman for the British Columbia Securities Commission, revealed the agency now has no indications QuadrigaCX was "operating as a marketplace or exchange under British Columbia securities laws". He was 30. The couple, who lived in the Halifax suburb of Fall River in Nova Scotia, didn't have any children. Cotten died on a trip to India, and his wife claimed that all of the passwords needed to access the exchange and the cold wallets where funds are stored were unknown to her.

The Canadian Securities Administrators, an umbrella group, published an investor alert last June urging Canadians to be cautious when considering buying crypto assets through trading platforms.

Cryptocurrency exchange QuadrigaCX has recently been granted creditor protection by the Nova Scotia Supreme court judge Michael Wood - but questions are being asked whether the firm ever had the $145 million it owes its users?

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The crypto community, in general, is treating Cotten's death with skepticism.

"In an application to probate the will, filed on December 21, 2018, Robertson confirmed that the gross value of Cotten's personal property - all of which was left to her - was $9.6 million". All they need to have is some money to charm the government employees who issue the death certificate. Cotten was reportedly admitted to the hospital in the evening of December 8 and died of cardiac arrest a little less than a day later on December 9. He was complaining of vomiting, watery stools and crampy abdominal pain. Cotten had also been suffering from Crohn's disease, an inflammatory bowel disease which can sometimes cause life-threatening complications.

"As Cotton's death was reported in Jaipur-based Fortis Escorts Hospital, there was no point of suspicion at that time".

Next, reports emerged that the cryptocurrency exchange was not even regulated as it claimed to be. He was also feeling feverish when he came to the hospital, sources said.

Earlier a year ago, Quadriga was experiencing difficulties accessing CA$21.6m of its funds, when the Canadian Imperial Bank of Commerce (CIBC) froze five accounts belonging to the exchange's payment processor, Costodian Inc., and its owner, Jose Reyes.

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