QuadrigaCX users who suffered losses following the collapse of what was once Canada’s largest crypto exchange are now getting a small portion of their money back.
In 2018, 30-year-old CEO and founder of QuadrigaCX, Gerald William Cotten, died unexpectedly, leaving approximately $190 million in crypto assets deposited on the platform inaccessible or unexplained.
The following year, Quadriga Fintech Solutions, the exchange’s owner, filed for bankruptcy because investors could not withdraw their funds. To date, there are 17,648 claims against the company worth $223 million.
A new update from consulting giant Ernst & Young, the trustee of the now-defunct firm, says some claimants will receive a portion of their foreclosed investments.
In its May 12 notice to creditors, Ernst & Young announces an interim dividend that allows victims of the QuadrigaCX crash to receive approximately 13% of their claim minus some deductions.
“Each creditor with a proven claim will receive 13.094156% of his proven claim less the amount of levy payable to the Office of the Superintendent of Bankruptcy Act under the BIA (Bankruptcy and Insolvency Act). The interim dividend provides for a distribution of approximately 87.0% of the funds currently held by the Bankruptcy Trustee.”
The remaining funds are held as a reserve for future payments in the context of the settlement of the bankruptcy.
The notice states that only those with proven claims are eligible for payment by mail check or other arrangements as may be demanded by the trustee.
“If your claim is listed as a disputed claim on the attached dividend sheet, please review and respond to the notice of review or rejection sent to you or otherwise contact the trustee. No payment will be made pursuant to Disputed Claims unless and until such dispute is resolved and the claim is recognized as an Accepted Claim.”
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Featured image: Shutterstock/Dilyana Design/Andrey Lobachev
