Former QuadrigaCX’s Law Firm Appears To Have Conflict Of Interest
Stewart McKelvey, which is the law firm in questioned, reportedly had a conflict of interest simply due to the fact that it became the representative of both QuadrigaCX and Jennifer Robertson. The latter, in particular, is said to be the widow of the late crypto exchange’s founder named Gerald Cotten.
Conflict of Interest Revealed
According to the official report, the new revelation is based on a letter sent directly to creditors from Miller Thomson. It is worth noting that it is one of the two law firms hired to be the representative counsel for the customers of the aforementioned crypto exchange, with Nova Scotia Supreme Court being the employer.
Apparently, Stewart McKelvey decided to withdraw from representing QuadrigaCX during the creditor protector proceedings. The law firm cited a “potential conflict” as being the reason, something that other parties also raised. Moreover, the firm stated that at that time, it had no idea about what exactly the conflict was.
But as far as the letter from Miller Thomson is concerned, not only the representative counsel but also the crypto exchange’s court-appointed monitor Ernst & Young experienced issues with the said law firm. In addition to the information provided, the firm is also assigned to represent both the company and Robertson, the man responsible for representing the executor of her late husband’s estate.
The ‘Irreconcilable Conflict’
According to a document, the representative counsel managed to send at least two letters addressed to the Applicant’s Counsel, with the idea to express comfort regarding the conflicts of interest courtesy of Stewart McKelvey’s representation. The Monitor, on the other hand, also conveyed similar issues. As such, the representation is deemed “an irreconcilable conflict” and one that requires to be addressed without any delay.
The firm’s lawyers, later on, acknowledged the existence of the conflict. And while it is true that the narrative was first meant to come up with a proposal designed to address the conflict, the law firm reportedly informed both EY and Miller Thomson, Coyx & Palmer about the withdrawal as QuadrigaCX’s counsel.
Apparently, though, the above-mentioned law firm is expected to continue representing Robertson personally in the ongoing case.
The Next Steps
The people involved in the case are said to hold an upcoming conference call in an attempt to determine the next steps. According to the communication provided by Miller Thomson, all of the parties are expected to be back in hopes of addressing what the next steps are.