Cryptocurrency

QuadrigaCX CEO’s Widow: “I believe Gerry cared for his customers.”… Sorry, we beg to differ.

Unlike creating a clichéd and dated movie about Russian gangsters using Bitcoin to launder money, a film about the QuadrigaCX mystery could actually carry water.
The story itself is far more complex and engaging than watching an ageing Kurt Russell battle against the stereotypical Russian crypto-boogeyman.
What provides a truly Hollywood-worthy storyline are the vast number of highly suspicious coincidences in the story, which could easily transfer into being twists that would compete against any big-name thriller of the last two decades.

The widow of the former CEO of QuadrigaCX, Jennifer Robertson, has been reported today to have made a statement via law firm, Stewart McKelvey, defending the intentions and actions of her husband, as well as her own:
“While I had no direct knowledge of how Gerry operated the business, he told me that he had been putting his own money back into QCX to fund user withdrawals in 2018 while the CIBC money remained frozen. I believe Gerry had the best interests of the business in mind, and cared for his customers.”
Right, but who could blame a grieving wife for supporting her deceased husband under such scrutiny?
Well for one, the swathes of cryptocurrency traders and investors who have collectively lost $190 million of their life savings, nest eggs and funds earned in no small part, from the hard work, sweat and tears along the way.
To go even further, how about the cryptocurrency industry as a whole, which has to shoulder the burden of more negative publicity, suspicion from the general public and told-you-so’s from the vocal army of crypto-haters in the world.

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Claiming that Gerry Cotton cared for the users of QuadrigaCX is akin to saying that the driver of a bus who falls asleep at the wheel cared for the passengers on board before veering off a cliff.
Caring for the people placing their trust in you means doing things in a way where as much risk is mitigated on their behalf as possible. Allowing for thousands of people to be essentially robbed of their money under your watch does not fit any definition of ‘caring’.
But there are many that would go further than this, to point out the significant discrepancies within this case, many of which point to not just a situation of negligence, but potentially an active scheme to defraud thousands of people of their funds in one of the most brazen exit scams in the history of digital currency.
Here are some very interesting facts to consider:
  • The CEO of Canadian Crypto Exchange, QuadrigaCX, was Gerry Cotten, until reports of his death surfaced on January 14th 2019.
  • Cotten, for no apparent reason, was the sole bearer of the private keys and other secure data required in order to access the stores of cryptocurrency on the platform, and this effectively meant that upon his reported death, there was not a human being on earth who could regain the $190 million stored on the behalf of clients.
  • Cotten was 30-years old at the time of his reported death, and a disease which typically isn’t fatal to people so young was attributed in this case as the cause.
  • Cotten’s death was not reported in his home country, Canada, but in a remote area of India called Rajasthan.
  • The exchange reportedly went through financial difficulties in 2018, and may have even lost a significant portion of the funds owned by users.
  • This is supported in a Bloomberg story which uncovered the fact that the cold wallets meant to be storing user funds we in fact empty.
  • 2 weeks before his reported death, Gerry Cotten changed his will and left his personal property worth almost $10 million to his wife, Jennifer Robertson. This article is focused on Robertson’s statements today that she believes “Gerry had the best interests of the business in mind, and cared for his customers.”
  • Cotten and Robertson owned 16 properties and a plane, even with the financial issues Quadriga faced in 2018, which included the Canadian Imperial Bank of Commerce freezing $30 million of the company’s assets.
  • Following the reported death in India, the first embalmer refused to proceed because the body had not come from the hotel which he was told it would be coming from. A second embalmer (who was actually a medical student) instead conducted the process.
  • The body was flown back to Canada and a closed-casket funeral service conducted, all before any public release of the any details of the death had been made.

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Needless to say, the claim that a CEO in charge of the funds of over 115,000 traders was ‘caring’ for traders whilst, at the very least negligently, being responsible for financially ruining many of their lives, is just a little bit rich in our humble opinion.