Crypto Exchange QuadrigaCX Former Users Set to Receive 13% on the Dollar in Bankruptcy Proceedings
Former users of now-bankrupt Canadian crypto exchange QuadrigaCX are set to receive 13% of their total claims.
According to a notice to creditors published late Friday by accounting giant Ernst & Young (EY), each creditor of the exchange will receive "13.094156% of their proven claim less the levy amount payable to the Office of the Superintendent of Bankruptcy pursuant to the BIA.”
The filing shows QuadrigaCX owes CAD $303.1 million ($222.3 million) across 17,648 claims from creditors, which include Canada Post and the country’s tax authority, Canada Revenue Agency (CRA).
Notably, there are 15 claims with a value greater than CAD $1 million, and 28 claims with a value between CAD $500,000 and $999,999. Another 15,356 creditors are owed between CAD $0 to CAD $10,000.
“The interim dividend provides for a distribution of approximately 87.0% of the funds the Trustee is currently holding," the filing read.
"The remaining funds will be held as a reserve for future disbursements related to the administration of the bankruptcy. A final distribution will be made at a later date"
While the majority of exchange users held cryptocurrency assets at the time of the company's collapse in 2019, their holdings were converted into the asset's monetary value as of April 15 of that same year.
According to EY, users with BTC claims will get CAD $6,739.08 ($7,122.9) per coin. For Ethereum, users will get CAD $223.45 ($299.45) per ether.
QuadrigaCX sought bankruptcy protection in 2019 after it was revealed that its CEO, Gerald Cotten, died under mysterious circumstances in India, taking the only known private keys to the exchange’s wallets with him.
Subsequently, the Ontario Securities Commission launched a probe into the exchange and
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