There’s only one person who knows what really happened to Gerry in India–besides Gerry himself–and it’s his wife, Jen. We trace the 7,000-mile path that Gerald Cotten’s body took after his alleged death, from a Jaipur hospital to a Halifax cemetery. A friend of Gerry’s once defended him and said there was no way he faked his death. But now he’s changed his mind and wonders how he missed the clues, despite being a Bitcoin security expert. Three years before his death, Gerry embarks on a spending spree, buying a yacht, a plane, and even his own private island. But things at his Bitcoin exchange, Quadriga, begin to unravel.

HYIP schemes typically promise ridiculously high rates of returns, but behind the scenes, no real investment is taking place. The operator simply uses money from new investors to pay off earlier ones, all the while skimming funds off the top for himself. When the supply of new investors runs dry, the scheme collapses. There is other evidence to support Quadriga using Crypto Capital. At one time, the payment processor listed Quadriga on its website as a client.

After suffering blackouts, Kosovo recently banned crypto mining. Last month, Kosovo’s largest coal-fired plant closed due to technical issues, forcing it to import 40% of its electricity at higher prices. If it’s going to survive this energy crisis, the miners need to go. Countries that once welcomed crypto miners with open arms now want them gone because of the strain they put on their power networks. Kazakhstan’s energy system has been struggling to keep up with increased crypto mining in the country, driven by the rise in bitcoin’s price and a rush of miners to its borders after China banned bitcoin mining last year.

In total there was CA$33 million in missing funds, reports the BBC. The company tried to raise money and list on the Canadian Securities Exchange working with Patryn. The company raised C$850,000 but cancelled plans to list on the exchange in early 2016. Quadriga had four employees in 2015 with offices in Vancouver and Toronto, but ran out of money fxgiants review by June 2015. Ernst & Young was appointed as an independent monitor while Quadriga was granted temporary legal protection from its creditors under the Companies’ Creditors Arrangement Act. On 8 April 2019 the firm entered bankruptcy under the Bankruptcy and Insolvency Act as the possibility of a successful reorganization appeared to be remote.

Quadriga Fintech Solutions

Those who follow events in the digital currency markets today are probably nodding knowingly at this. There’s not much else to say regarding his exact whereabouts unless you believe the theories that Gerry somehow faked his death and absconded with the money. It’s not a bad theory since The Hunt for the Crypto Kingindicates that Gerry had some grand plans for what to do with the money had he not died. Patryn told reporters after Cotten’s death that they had met online over five years ago, but this was about as accurate as calling himself an “adviser” to Quadriga when in fact he had been the cofounder.

The Digital Planning Podcastis designed to educate individuals about all things digital in connection with estate planning, business planning, and estate administration. Your hosts, Jennifer Zegel, Ross Bruch, and Justin Brown, will guide you through the digital world and aim to keep you informed of developments and updates in this ever-changing space. January 28, 2020 — Miller Thomson gets fed up with the RCMP’s inaction, so it sends a letter to Bill Blair, Canada’s Minister of Public Safety and Emergency Preparedness, who is the person responsible for the RCMP. Will Cotten’s body will be exhumed by springtime, or not?

On 5 March 2019, Justice Wood extended Quadriga’s court protection to 23 April. He appointed Peter Wedlake of Grant Thornton to be chief restructuring officer. Quadriga’s customers are owed C$260 million in cryptocurrency and cash. Ernst & Young reported on 6 February 2019 that C$468,675 (US$354,300) of bitcoin were “inadvertently” sent to an inaccessible cold wallet. Meanwhile, in order to manage the finances of the company during the process, a third-party monitor, Ernst & Young, was appointed. Cotten’s will was signed 27 November 2018, twelve days before he allegedly died.

gerald cotten

“He’s made a lot of posts on TalkGold, therefore he must be honest” seemed to be the general opinion of the investors. “S&S Investments is an interesting program because it was operated by a ‘well known’ person in the HYIP arena. I use the quote marks, because this person was not well known at all, in fact he was very anonymous. No one knew his name, other than his nickname he used to post with, Sceptre.

She expressed a desire to “move on with the next chapter of my life.” She may have to change her name one more time in order to do so. In 2014 Cotten spoke publicly of moving currencies coinlib between exchanges to take advantage of arbitrage opportunities. It may be that he traded Quadriga’s funds in a frantic effort to recoup the losses he had sustained.

No, really, who was Gerald Cotten?

As heard in Trust No One, some Quadriga investors believed Cotten faked his own death and ran off with millions as part of an “exit scam,” others believed he had his face modified by a plastic surgeon and was no longer recognizable. From almost the moment the news came out that Cotten had died, long before the explosive report from Ernst & Young, theories started circulating online that Cotten was still alive and had faked his own death. QuadrigaCX was started by Gerald Cotten and Michael Patryn in Canada in 2013, focusing on local trades of bitcoin . With a small staff, they expanded in 2014 to open a bitcoin ATM in Vancouver, but had trouble raising funds and ran out of money in 2015 after a failed attempt to go public and list on the Canadian Securities Exchange. “Vancouver crypto exchange, CIBC clash over frozen accounts”.

  • Most exchanges typically keep the majority of their crypto in offline “cold” wallets for security reasons.
  • But this only caused further strain on the largely-unmanned operation of Quadriga, with Cotten not even working from a permanent office space.
  • Patryn, though six years older than Cotten, was only 21.
  • According to a company prospectus, the trading platform pulled in a mere $22,168 CAD in revenue in the quarter ending Jan. 31, 2015.

They traced the relationship back to 2003, to a dingy warren of a website called TalkGold. It was devoted to high-yield investment programs, or HYIPs, more commonly known as Ponzi schemes. He was driven to a private hospital and diagnosed with acute gastroenteritis. The following afternoon his condition deteriorated and blood tests indicated septic shock. Before doctors could stabilize him, his heart stopped; he was revived, and his heart stopped again.

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Meanwhile, Quadriga’s customers are now having trouble getting their crypto out of the exchange. Unlike cash, which has to go through a third-party payment processor, crypto should move directly from the exchange to the customer. This leads to concern that maybe the crypto funds aren’t actually xtrade broker there. December 2015 — Cotten sets up the famed Chris Markay account on Quadriga. Initially, Cotten funds the account with fake dollars and uses it to purchase real bitcoin from Quadriga customers. While Liberty Reserve may be history, a new digital currency, Bitcoin, is making headlines.

gerald cotten

According to the Netflix documentary, at least 110,000 customers were affected. In the “Exit Scam” podcast, Aaron Lammer details ways people can even hire “facilitators” in India to fake a death, including getting a fake body to put in a coffin as part of the package. He also explains that at no point in the transport of Cotten’s body from India to its burial in Canada was anyone, at any point, required to identify the body.

Who Is Gerald ‘Gerry’ Cotten?

Some Reddit users have suggested that Cotten faked his own death in order to defraud customers and abscond with the funds himself. Gerry, full name Gerald, was a Canadian Bitcoin investor, who founded the cryptocurrency trading platform Quadriga CX. An announcement on the firm’s website says that anyone interested in “receiving a price quote for your claim” should fill out an online form or call the firm directly. The court proceedings for the shuttered exchange have been held in Halifax since January 2019, following its founder’s untimely death.

From here out, the bank takes a hands-off approach to those funds. The boat features three cabins, a six-person dining area , a dishwasher, a gas stove, a washer and dryer, an en-suite bathroom with a standing shower, along with a swim platform with teak battens. SEDAR,a system for filing securities documents with Canada’s regulators, QuadrigaCX publishes its last “certification of interim filings.” In other words, its last financial audit.

Our story begins in December 2018 with Gerald Cotten, the founder of Canada’s largest crypto exchange at the time, QuadrigaCX. He and his new bride, Jennifer Robertson, go on a trip to India where Cotten, who suffered from Crohn’s disease, fell ill. Unfortunately, his health takes a turn for the worse and he passes away shortly after being admitted to a hospital. A month later, QuadrigaCX announces his passing in a statement credited to Robertson.

He admits to CIBC he did not notify Quadriga prior to transferring the money to his personal accounts. “In Mr. Patryn’s telling, Mr. Lawrence failed to perform his duties properly and the company was never able to list. Mr. Lawrence raised a total of $850,000, of which $150,000 came from Mr. Patryn. But by June, 2015, the company had run out of money and lost 45 percent of its market share, according to Mr. Patryn’s statement of claim. Mr. Patryn said much of the money had to be spent correcting the “poor quality” of Mr. Lawrence’s work. Investors pitched in another $600,000, including $200,000 from Mr. Patryn, to keep the company from failing.

If you want to share your ideas, submissions are open until May 15. “They are suspicious and are coordinating with the FBI,” Reddit user “u/e_z_p_z-” wrote in quoting someone on Telegram. I contacted RCMP to verify, but they were tight lipped on the matter. “The RCMP is aware of the allegations against QuadrigaCX. We will not be providing any further information,” a spokesperson told me.

Netflix’s ‘Trust No One’: Who Was QuadrigaCX CEO Gerald Cotten?

In 2010 he graduated with a bachelor’s degree in business administration from an honors program at York University’s Schulich School of Business in Toronto. His parents owned an antiques store; Cotten decided to go into crypto. Gerald Cotten was the founder of Quadriga CX, once Canada’s largest cryptocurrency exchange. On Tuesday, a Halifax judge granted Quadriga a 30-day stay while it searches for the lost crypto, temporarily shielding the company from lawsuits by customers, some of whom reportedly own millions that are now stranded.

Yet, three Quadriga creditors claim they received wires from Robertson’s real estate company, Robertson Nova Property Inc. The monitor also identified three other potential Quadriga cold wallet addresses used to store cryptocurrency, but provided no detail. The defunct crypto exchange was holding $250 million CAD ($190 million USD) in crypto and fiat at the time it went bust. EY has been trying to track down any recoverable funds—and it’s not finding much. Bitcoiners have long counted on a flood of institutional money to prop up the price of bitcoin—but it is just not happening. As the crypto markets began to tumble in 2018, CBOE saw scant trading volume on its bitcoin futures product.

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