A Potential Conflict Of Interest Sees Quadriga Lawyer Withdraw From Firm’s Ongoing Case

A Potential Conflict Of Interest Sees Quadriga Lawyer Withdraw From Firm’s Ongoing Case

As per an all-new article published by Bloomberg a few hours back, the law firm that is representing Quadriga Fintech Solutions Corp. is all set to withdraw from the company’s ongoing legal battles— mainly because of some new developments that could potentially spark a “conflict of interest” between two or more of the involved parties.

For those of our readers who might not be aware of the Quadriga issue, the Vancouver-based digital currency exchange had to abruptly halt all of its operations at the start of this year due to the death of the firm's CEO Gerald Cotten (during his honeymoon in India around mid-January). Due to this sudden closure, it is believed that more than 115,000 customers were suddenly left without access to their crypto+fiat holdings (estimated to be worth CAD $260 million or USD $195 million).

At this point in the article, it is worth pointing out that “Stewart McKelvey”, an established Canadian law firm with a number high-profile clients, was representing both Quadriga and Gerald Cotten— the firm’s deceased chief executive officer who with his passing, took with him the passwords to $140 million worth of cryptocurrencies.

More On The Matter

In regards to the above-stated matter, Ernst & Young Inc., the oversight authority currently looking at the Quadriga case issued a memo stating that they had certain reservations “about the firm’s potential conflict of interest in the matter”. The letter in question was composed by Maurice Chiasson and was sent to the Nova Scotia Supreme Court on the 13th of March.

The letter by Chiasson reads as follows:

“Notwithstanding that no information has been disclosed which provides a basis to conclude there has been or is the potential for conflict, we are of the view that the appropriate course in these circumstances is to withdraw from our representation.”

Final Take

In closing out this piece, it is worth adding that despite all of the aforementioned developments taking place it is believed that the firm will continue to represent Cotten’s estate (as well as his wife, Jennifer Robertson).