QuadrigaCX was the first exchange to hold cold storage insurance, claims exchange’s former lawyer

Christine Duhaime, a lawyer associated with Duhaime Law, the law firm once associated with the troubled QuadrigaCX, claimed that the late CEO Gerald Cotten shunned the “law and order folks”, i.e, the accountant, the auditor and herself, who had been appointed as the regulatory attorney.

According to Bloomberg, Duhaime was hired in 2016 as the exchange’s regulatory attorney. QuadrigaCX allegedly still owes $100,000 to the firm, with Duhaime Law becoming a victim of extortion and defamation threats following the scandal.

The Canada-based exchange, registered with FINTRAC, was the first crypto exchange to get a cold storage insurance in 2015. It was a big “feat” back then, said Duhaime.

With four law firms counseling QuadrigaCX on different matters, QuadrigaCX was more transparent than many cryptocurrency exchanges that exist today, Duhaime claimed. Duhaime Law’s services were terminated after six months of operation with the exchange.

Accusing the late CEO of the company’s fate, Duhaime said that Quadriga began collapsing in 2016 when Cotten decided that he did not want the crypto exchange to be a “listed company”. Subsequently, he terminated all associated agencies. Duhaime added,

“From that moment onwards, Mr. Cotten solely took over QuadrigaCX and operated the exchange as if it had no investors, no shareholders, no regulatory agencies and no law that applied to it -– no corporate law, no securities law, no anti-money-laundering law and no contract law.”

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