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QuadrigaCX Founder’s Widow Seeks Court Costs Compensation

Reading Time: 2 minutes by on March 7, 2019 Business, Exchange, News
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Jennifer Robertson, the widow of Gerry Cotten, the late founder of the now-defunct QuadrigaCX cryptocurrency exchange has asked the court to repay her legal costs to the tune of C$300,000 ($225,000), reports Bloomberg on March 5, 2019.

Repayment Request

The QuadrigaCX saga resumes; as per sources close to the matter, Jennifer Robertson, the widow of the late owner of Quadriga Fintech Solutions Corp. Gerry Cotten, has requested to be repaid the sum of CAD 300,000 ($250,000) she spent to get court-approved protection from the angry creditors of the firm.

The funds in question were reportedly used to pay the monitor, Ernst & Young, plus other fees used in filling for the Companies’ Creditors Arrangement Act (CCAA) and appointing new directors for the firm. At present, Robertson and Tom Beazley are serving as the directors of QuadrigaCX

Reportedly, on March 1, 2019, Robertson signed a cashflow report projecting CAD 1.1 million in disbursements from March 2 to March 8, 2019.

CAD 300,000 has been set aside for settling shareholder advances, CAD 200,000 is for Ernst & Young, CAD 250,000 for its lawyers, CAD 229,842 for Quadriga’s law firm and CAD 17, 000 for independent contractors.

Creditors Kick Against Robertson’s Repayment

Interestingly, Robertson’s repayment request did not go down well with the law firm representing the firm’s cryptocurrency traders, who are yet to receive their missing CAD 260 million in fiat and cryptos from the embattled exchange.

Cox & Palmer partner Gavin D. F. MacDonald, the law firm representing QuadrigaCX clients declared on March 4:

“We are concerned about the repayment by the applicants of C$300,000 to Ms Robertson in the first week of March contemplated by the filed cash flow projection,” .

The firm further argued that it is inappropriate for Robertson’s repayment request to be granted before the monitor properly investigates the source of funds used to process the CCAA.

Accordingly, a Nova Scotia Supreme Court Justice, Michael Wood has reportedly extended the court proceedings for 45 days and has also greenlighted the appointment of a chief restructuring officer for QuadrigaCX, as requested by the exchange’s lawyer, Maurice Chiasson, who said:

“Some third parties have expressed an interest in acquiring the exchange,”

In February, BTCManager informed that BitGo, cryptocurrency custodian has bought a 100 million dollar insurance policy from Lloyd’s insurance, to guard itself against unforeseen circumstances in the cryptospace.

Presently, crypto exchange Kraken is offering a huge financial incentive in exchange for information pertaining to the missing funds.

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