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News

Bankrupt Exchange QuadrigaCX’s Users Were Recovered Over CAD 300 Million

May 13, 2023 - Around 2 mins mins to read

Key Points:

  • The defunct cryptocurrency exchange QuadrigaCX will redistribute funds to former users.
  • The estate of the exchange owes CAD 303.1 million in creditor claims.
According to a notification to creditors released late Friday by accounting company EY, former customers of the insolvent Canadian crypto exchange QuadrigaCX will shortly get a cheque for 13% of their claim.
Bankrupt Exchange QuadrigaCX's Users Were Recovered Over CAD 300 Million

According to EY documents, QuadrigaCX’s estate owes CAD 303.1 million to creditors, including Canada Post and the country’s tax authorities, Canada Revenue Agency (CRA).

After almost three years of bankruptcy proceedings, digital currency exchange QuadrigaCX was expected to begin interim distribution of money to creditors in the coming weeks.

In conjunction with estate inspectors, bankruptcy trustee Ernst & Young announced the interim distribution. In the near future, the trustee will issue a Notification to Affected Users outlining the distribution’s method and process. Miller Thomson predicts that a limited percentage of impacted users will get a Notice of Disallowance of Claim, indicating that the creditor’s claim has been altered or denied throughout the bankruptcy process.

According to EY, CRA ruled that Quadriga failed to declare revenue for the fiscal years 2016-2018 and owes $11.7 million in unpaid taxes.

According to the filings, there are 15 claims for more than CAD 1 million and 28 claims worth between CAD 500,000 and $999,999. There are also 15,236 claims for less than CAD 10,000.

According to EY, individuals with Bitcoin claims will get CAD 6,739.08 per BTC. Users will get CAD 223.45 per ETH for Ethereum.

The value of the cryptocurrency will be paid out based on market prices as of April 15, 2019.

After QuadrigaCX filed for bankruptcy in 2019, creditors have been vying for reimbursement for their exchange deposits. According to court filings, the exchange owed its consumers approximately $160 million, which was exacerbated by a $86 million trading loss.

The QuadrigaCX, formerly Canada’s biggest digital currency exchange, suffered several setbacks. When the platform’s creator Gerald Cotten died in India, the secret keys to the exchange’s cold storage systems went missing.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Canada

crypto

Ernst & Young

QuadrigaCX

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Bankrupt Exchange QuadrigaCX’s Users Were Recovered Over CAD 300 Million

Key Points:

  • The defunct cryptocurrency exchange QuadrigaCX will redistribute funds to former users.
  • The estate of the exchange owes CAD 303.1 million in creditor claims.
According to a notification to creditors released late Friday by accounting company EY, former customers of the insolvent Canadian crypto exchange QuadrigaCX will shortly get a cheque for 13% of their claim.
Bankrupt Exchange QuadrigaCX's Users Were Recovered Over CAD 300 Million

According to EY documents, QuadrigaCX’s estate owes CAD 303.1 million to creditors, including Canada Post and the country’s tax authorities, Canada Revenue Agency (CRA).

After almost three years of bankruptcy proceedings, digital currency exchange QuadrigaCX was expected to begin interim distribution of money to creditors in the coming weeks.

In conjunction with estate inspectors, bankruptcy trustee Ernst & Young announced the interim distribution. In the near future, the trustee will issue a Notification to Affected Users outlining the distribution’s method and process. Miller Thomson predicts that a limited percentage of impacted users will get a Notice of Disallowance of Claim, indicating that the creditor’s claim has been altered or denied throughout the bankruptcy process.

According to EY, CRA ruled that Quadriga failed to declare revenue for the fiscal years 2016-2018 and owes $11.7 million in unpaid taxes.

According to the filings, there are 15 claims for more than CAD 1 million and 28 claims worth between CAD 500,000 and $999,999. There are also 15,236 claims for less than CAD 10,000.

According to EY, individuals with Bitcoin claims will get CAD 6,739.08 per BTC. Users will get CAD 223.45 per ETH for Ethereum.

The value of the cryptocurrency will be paid out based on market prices as of April 15, 2019.

After QuadrigaCX filed for bankruptcy in 2019, creditors have been vying for reimbursement for their exchange deposits. According to court filings, the exchange owed its consumers approximately $160 million, which was exacerbated by a $86 million trading loss.

The QuadrigaCX, formerly Canada’s biggest digital currency exchange, suffered several setbacks. When the platform’s creator Gerald Cotten died in India, the secret keys to the exchange’s cold storage systems went missing.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News