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QuadrigaCX Cofounder Paid Users His Own Funds

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On March 13, there was evidence that Gerry Cotten, the cofounder of the Canadian cryptocurrency exchange QuadrigaCX, paid money to users of the website from his own savings after the bank froze several crypto exchange accounts.

After the death of Cotten, his wife, Jennifer Robertson, published a post on the Scribd website, stating that CIBC had frozen 5 QuadrigaCX accounts with $ 21.6 million in cash. According to her, Gerry Cotten compensated the financial losses of traders due to the blocking of bank accounts from their own savings.

CIBC Bank has blocked accounts to identify the owners of funds. Representatives of the exchange reported that the actions of the bank were illegal, since the overwhelming majority of the money belonged to the exchange, and not to its users. However, later QuadrigaCX representatives abandoned their claims to the bank, according to Robertson, because of a “conflict of interest”.

In early March, Jennifer Robertson filed a lawsuit demanding compensation for her legal expenses in the amount of $ 225,000. She allegedly spent the money during the trial of the disappearance of cryptocurrency in the amount of $ 190 million from the accounts of the QuadrigaCX exchange after the death of Cotten. Robertson argues that she will continue to cooperate with the investigation and help to understand this confusing case.

The whereabouts of the missing digital assets is still unknown. The interests of the users of the exchange are represented by the law firm Cox & Palmer; the investigation is carried out by the experts of the auditing firm Ernst & Young and the Canadian Commission for Restructuring the Business of Commercial Enterprises.