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Jennifer Robertson to Pay $12 Million CAD in Quadrigacx Settlement

As the death of Gerald Cotten, founder of Quadrigacx, a once reputable cryptocurrency exchange in Canada took the world by surprise, efforts to mitigate the losses incurred by users of the platform have hit yet another win for customers whose assets remained unrecoverable as Jennifer Robertson, late Gerald’s wife has issued a statement on Monday, October 7th agreeing to pay about $9 Million dollars (12 million Canadian dollars) in assets to EY Canada.

Statement Released by Jennifer Robertson

In the wake of the recovery process championed by Ernst and Young Canada, Robertson made a statement on Monday confirming that “since the initiation of the CCAA proceedings and as outlined in the Monitor/Trustees report”, she has been forthcoming throughout the process. This statement underscores her claim of not being aware of how her husband ran the affairs of Quadrigacx while alive. A position that is curiously debated by analysts in the Cryptosphere.

Robertson would be making this refund from own assets according to her;

“I have now entered into a voluntary settlement agreement where the vast majority of my assets

and all of the Estate’s assets are being returned to QCX to benefit

the Affected Users. These assets originally came from QCX at the direction of Gerry”

Jennifer and Gerald’s assets which are valued at about US$9 Million are to be liquidated according to a report released by EY on Monday and used to settle Quadrigacx customers.

This move by Jennifer Robertson is a way to avoid further litigation costs and should also be seen as a valiant one as it helps reinvigorate the hopes of not only the benefitting Quadrigacx customers but also of users in the cryptosphere.

Creditors of Defunct Crypto Exchange Cryptopia Can Now File For Claims With Audit Firm Following Massive Hack

The creditors of now-defunct New Zealand based cryptocurrency exchange Cryptopia can now file for claims with appointed audit firm Grant Thornton. According to the official announcement released by the audit firm, emails have been sent to the concerned Cryptopia users who are expected to register using the Cryptopia claims portal which is now live.

What happened to Cryptopia?

Cryptopia was a New Zealand cryptocurrency exchange based in Christchurch that was founded by Rob Dawson and Adam Clark in 2014. The early entry of the exchange into the market was cut short when the exchange in January 2019 suffered a security breach which resulted in significant losses amounting to about $16 million. The exchange went into liquidation in May 2019. David Ruscoe and Russell Moore from Grant Thornton New Zealand were appointed liquidators of Cryptopia.

Since then, a lawsuit ensued in which Cryptopia’s customers sued the exchange in a bid to make available their locked-up funds. According to a Blockchain.news report back in April, Justice David Gendall of the High Court in Christchurch, New Zealand, delivered a significant ruling that customers are entitled to the digital assets they held in Cryptopia accounts. The ruling came in recognition of the fact that the exchange was indeed keeping custody of the assets for its customers.

Mishaps such as that suffered by Cryptopia is not uncommon in the cryptocurrency exchange ecosystem of today. From the Asset lock-up owing to the death of the owner of the Canadian-based cryptocurrency exchange QuadrigaCX, to the recent hack of KuCoin exchange, the exchanges in the space are usually predisposed to one form of risk or the other.

While Cryptopia is getting set to make a refund of about $4.2 million according to a Grant Thornton estimation, QuadrigaCX made a settlement of CAD$12 million through Ernst & Young, the audit firm employed in the case.

The Sordid Tale of QuadrigaCx is Coming to Netflix

American over-the-top content platform and production company Netflix Inc is set to premiere a documentary revealing the fall of a once-popular Canadian cryptocurrency exchange QuadrigaCx and the dead of its founder, Chief Executive Officer Gerald Cotten. He left the trading platform in chaos.

The death of Cotten in 2019 was out of expected. The lost of private keys and the funds lost from over 17,000 customers as the claims, resulting in as much as $250 million were locked into the platform when the news of Cotten’s death was first blown open. As Cotten had the only access to the database that could help unlock users’ hot wallets, leading to a great loss.

The Netflix original documentary will be reviewing some of the exchange’s customers who have held onto and propagated the school of thought that Cotten faked his own death to defraud the thousands of customers who trusted him and his trading platform. The proposed Netflix documentary set to premiere in 2022 is dubbed: “TRUST NO ONE: THE HUNT FOR THE CRYPTO KING.”

The production “follows a group of investors turned sleuths as they try to unlock the suspicious death of cryptocurrency multimillionaire Gerry Cotten and the missing $250 million they believe he stole from them,” Netflix reveals in its Twitter announcement where the firm also announced a list of other movies to expect soon.

The Gerald Cotten story drew in investigation from Ernst & Young (EY), one of the big four auditing firms appointed to help the trading platform’s aggrieved customers. The auditor eventually proposed three major options to compensate the claimants who held assets on the exchange. As of November 2020, a total of $29.8 million was designated as payable to the exchange’s customers.

With Netflix’s reputations in well-researched documentaries bordering on people’s lives, such as the case of the Colombian drug lord, Pablo Escobar, featured as Narcos, chances are the movie company will reveal new details that have not been made public about Gerald Cotten’s story before.

DeFi Protocol Wonderland Involves Cybercrime, Associated with Canadian Crypto Exchange Quadriga

According to Bloomberg, a decentralized finance project called Wonderland involving a felon associated with Canadian cryptocurrency exchange Quadriga has sparked widespread controversy, turning DeFi into a financial felon’s wonderland.

Sifu was identified by an anonymous Twitter user as Michael Patryn, the co-founder of the failed Canadian cryptocurrency exchange QuadrigaCX.

Launched by Sestagalli and 0xSifu in September 2021, Wonderland runs on the Avalanche blockchain.

The Quadriga exchange has cost 76,000 investors in Canada and about C$169 million ($133 million) since the death of Quadriga co-founder Gerald Cotten in 2018 One of the most famous large-scale fraud incidents to date.

Ernst & Young, the trustee of the now-bankrupt cryptocurrency exchange QuadrigaCX, published a report showing that almost 17,000 people have filed for the remaining assets of the crypto exchange in 2020.

Wonderland’s native token is TIME, and the current total value locked in the protocol is nearly $680 million, falling to an all-time low of $335 on Thursday before recovering to around $440.

Co-founder Daniele Sestagalli said Thursday that he asked Wonderland’s treasurer, who goes by the alias Sifu or 0xSifu, to step down.

A crypto wallet identified as belonging to Patryn appeared to be rapidly dumping various tokens on Thursday, with its total net worth dropping from $450 million to $70 million in a matter of hours, according to data from trackers DeBank and Zapper.

MyCrypto founder Taylor Monahan also traced a note marking a wallet as Patryn’s, which identified it as the Ethereum address of his Ledger hardware wallet.

She said the wallet is still active now, along with a transaction to 0xSifu’s address — a 17 ether ($42,500) transaction. This finding supports the fact that the two are the same person.

MyCrypto founder Taylor Monahan noted that on-chain evidence supports Zach’s claims. In 2019, she tagged a wallet as Patryn’s based on a note that identified it as the Ethereum address of his Ledger hardware wallet. She then showed that the wallet was still active, including transactions to 0xSifu’s address — such as a transaction of 17 ether ($42,500).

As reported by Blockchain.News on September 24，American over-the-top content platform and production company Netflix Inc is set to premiere a documentary revealing the fall of a once-popular Canadian cryptocurrency exchange QuadrigaCx and the dead of its founder, Chief Executive Officer Gerald Cotten. He left the trading platform in chaos.

$1.7M In QuadrigaCX Bitcoin Wakes After Years

It was assumed that the wallets had been inaccessible after the creator of the exchange passed away in 2018, as he was the only person accountable for the private keys of the wallets, and he was the only one who possessed those keys.

After years of dormancy, it was recently revealed that five accounts related to the defunct Canadian cryptocurrency exchange QuadrigaCX were abruptly exchanging around $1.7 million worth of Bitcoin. It had been thought that these wallets did not exist prior to the recent finding, which disproved this theory.

A researcher in the cryptocurrency field by the name of ZachXBT issued a warning to the cryptocurrency community on December 19 in the form of a tweet. The message focused on the five wallets that moved around 104 Bitcoin to other wallets.

The information that has been preserved on the blockchain indicates that the wallets have not moved any Bitcoin since at least April of 2018.

After the demise of its founder and CEO, Gerald Cotten, in December 2018, QuadrigaCX was formerly the most prominent bitcoin exchange in Canada. Gerald Cotten passed away. Nonetheless, in April of 2019, the exchange made the announcement that it was going to seek protection under the bankruptcy laws. Cotten was the sole individual who had knowledge of the private keys to the wallets used by the exchange.

At the time of its failure, roughly 155,000 clients were owed a total of nearly $200 million in cryptocurrencies.

According to a report that was published in February 2019 by Ernst & Young, one of the Big Four accounting firms that was overseeing the exchange’s estate, on February 6, 2019, QuadrigaCX made an accidental transfer of approximately 103 BTC to cold wallets that were only accessible to the deceased Cotten.

The overall value is really close to being exactly the same as the most recent transaction volume in Bitcoin.

QuadrigaCX Bankruptcy Trustee Announces Interim Distribution of Funds

QuadrigaCX’s bankruptcy trustee, Ernst & Young, has announced an interim distribution of funds to creditors of the now-defunct Canadian cryptocurrency exchange. The announcement was made in consultation with estate inspectors, and a Notice to Affected Users will be posted soon with further details about the distribution process.

QuadrigaCX became insolvent in February 2019, following the death of its co-founder, Gerald Cotten. Cotten had taken the private keys to QuadrigaCX’s offline storage systems to his grave, leaving the exchange unable to access its funds. According to the Ontario Securities Commission (OSC), QuadrigaCX owes its affected clients an estimated $160 million.

Since then, Ernst & Young has been working as the bankruptcy trustee for QuadrigaCX and has been attempting to recover any assets it can for the exchange’s creditors. So far, the trustee has recovered $34.3 million worth of assets.

The interim distribution of funds provides some relief to QuadrigaCX’s creditors, who have been waiting for over two years to receive any compensation for their losses. However, the trustee has also stated that a small number of affected users may receive a Notice of Disallowance of Claim, meaning that their creditor’s claim has been revised or disallowed in the bankruptcy process.

If users receive a Notice of Disallowance, they have the right to appeal the decision. Miller Thomson, the law firm representing QuadrigaCX users, has advised affected users to review the reasons for the revision or disallowance and gather any necessary evidence to support their claim.

The collapse of QuadrigaCX was a major blow to the Canadian cryptocurrency market, raising concerns about investor protection and regulatory oversight. The QuadrigaCX case highlighted the need for proper safeguards and measures to protect investors and prevent similar incidents from happening in the future.

Ernst & Young’s announcement of the interim distribution of funds is a significant step in the bankruptcy proceedings of QuadrigaCX. However, it remains to be seen how much creditors will actually receive and how long the proceedings will continue. The bankruptcy trustee continues to work towards recovering any additional assets for the exchange’s creditors.

QuadrigaCX Users to Receive Interim Distribution

Users of the now-defunct Canadian cryptocurrency exchange QuadrigaCX are expected to receive interim distribution of funds tied to bankruptcy proceedings in the coming weeks. Law firm Miller Thomson, which represents QuadrigaCX users, announced the news on May 8. Bankruptcy trustee Ernst & Young has consulted with estate inspectors to announce the interim distribution. In the near future, the trustee will post a Notice to Affected Users providing details about the manner and procedure of the distribution.

However, a small number of affected users are expected to receive a Notice of Disallowance of Claim, which means that the creditor’s claim has been revised or disallowed in the bankruptcy process. If users receive such a notice, they have the right to appeal the decision. Miller Thomson explained that users should review the reasons for the revision or disallowance and gather any necessary evidence to support their claim. The Trustee is likely to have issued a Notice of Disallowance if there was a discrepancy in the user’s proof of claim.

QuadrigaCX was once the largest cryptocurrency exchange in Canada before it became insolvent in February 2019. The exchange’s co-founder, Gerald Cotten, died in India, taking the private keys to QuadrigaCX’s offline storage systems to his grave. According to the Ontario Securities Commission (OSC), QuadrigaCX owes its affected clients an estimated $160 million.

In addition to losing access to cold storage, the OSC alleges that Cotten realized $86 million in crypto trading losses on the QuadrigaCX platform, which was then covered with users’ funds. Since then, bankruptcy trustee Ernst & Young has recovered $34.3 million worth of assets. The OSC stated that they did not identify any other assets beyond those identified by Ernst & Young.

The interim distribution of funds provides some relief to QuadrigaCX users, who have been waiting for over two years to receive any compensation for their losses. However, it remains to be seen how much users will actually receive and how long the bankruptcy proceedings will continue. The QuadrigaCX case serves as a cautionary tale for investors, highlighting the importance of conducting due diligence and being cautious when investing in cryptocurrencies.