The death of QuadrigaCx’s CEO in December last year sparked an investigation on what happened to the funds that Cotten has allegedly placed in cold storage that the company is now unable to recover, leaving them with a $136 million debt.
The investigation has raised several suspicions on Gerard Cotten’s death as well as his co-founder and the rest of QuadrigaCX’s team. The Federal Bureau of Investigation (FBI) and the Royal Canadian Mounted Police (RCMP) are looking into the implosion if QuadrigaCX after almost $200 million of funds went missing following the death of its Chief Executive Officer.
The suspicion started from Cotten’s decision to file a will 12 days before his mysterious death in an Indian hospital according to court documents. The will purportedly leave millions of dollars in assets to Cotten’s wife, Jennifer Robertson, and made her the executive of his estate.
More suspicions mounted up after its court-appointed monitor, Ernst & Young, revealed that someone in QuadrigaCX ‘inadvertently transferred’ 103 Bitcoins worth nearly $500,000 to a cold wallet as part of the court proceedings. The funds are reportedly none existent anymore as someone has already withdrawn it.
QuadrigaCX made other unusual behavior and business decisions related to its business practice and corporate structures since its inception.
The company has faced a multimillion-dollar problem after the CEO of the company have died, taking the majority of the company’s digital assets including passwords and encryption keys, to his grave in late 2018.
On January 31st, the company filed a court protection motion after almost $200 million of unpaid debts from investors followed the death of its Chief Executive Officer, Gerard Cotten, late 2018 due to complications.
QuadrigaCX’s directors posted a notice on the firm’s website on Jan. 31 that it was asking the Nova Scotia court for creditor protection while they address “significant financial issues” affecting their ability to serve customers.
On Thursday last week, a report has concluded that the man who co-founded QuadrigaCX along with Gerard Cotten, Michael Patryn, is a convicted felon who served a prison sentence in the United States for his role in an identity theft ring.
The report suggests that Patryn was living under a different identity at the time
Amidst the overwhelming evidence that the report has shown, Patryn denied that he is the same person described in the investigation.
Other crypto companies have also started their forensic examination of the QuadrigaCX mystery. Coinbase’s CEO Brian Armstrong said that QuadrigaCX suffered from a “multimillion-dollar bug” in 2017and now QuadrigaCX’s executives are trying to trade their way out by using Cotten’s death as a pretext to pull the plug on its operations.
QuadrigaCX’s explanation to what happened, which was reminiscent of a bank saying it had misplaced most of its money, drew immediate scrutiny from the media and on sites like Reddit, where some users have questioned if Cotten had faked his death.
The story is that Cotten died in India. Local sources said that the CEO was admitted to a hospital with stomach pains, and eventually died of cardiac arrest. In a seemingly odd procedure, Cotten’s body was handled by hotel staff after an embalmer refused to receive it. His widow reportedly returned with it to Canada.
While there is no persuasive evidence Cotten faked his death, it is unclear whether anyone at a Nova Scotia funeral home that handled his service saw his remains. The funeral home, JA Snow, issued a “statement of death” but Kortney Adams, an executive with the association that oversees funeral homes in the province, said that a foreign death certificate issued such statements.
Jesse Powell, Kraken’s CEO, who attended Cotten’s private and closed-casket funeral said that his family appeared to be genuinely grief-stricken. Powell, for his part, says he is “99% certain” Cotten is dead.
For what happens now, after all of these mysterious events and accusations unfurling, the world is at its feet waiting to uncover new plots and twists in the saga QuadrigaCx stars.