QuadrigaCX users who suffered losses following the collapse of what was once Canada’s largest crypto exchange will now be receiving a small portion of their funds back.
In 2018, the 30-year-old CEO and founder of QuadrigaCX, Gerald William Cotten, unexpectedly died, leaving about $190 million worth of crypto assets deposited into the platform inaccessible or unaccounted for.
The following year, Quadriga Fintech Solutions, the owner of the exchange, filed for bankruptcy with investors unable to withdraw their funds. To date, there are 17,648 claims against the firm worth $223 million.
A new update from advisory giant Ernst & Young, the bankruptcy trustee for the now-defunct company, says that some claimants are set to receive a portion of their locked-out investments.
In its May 12th notice to creditors, Ernst & Young announces an interim dividend that will enable victims of the QuadrigaCX crash to receive around 13% of their claim minus some deductions.
“Each creditor with a proven claim 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 (Bankruptcy and Insolvency Act). The interim dividend provides for a distribution of approximately 87.0% of the funds the Trustee is currently holding.”
The remaining funds are being held as reserve for future disbursements involving the administration of the bankruptcy.
The notice says that only those with proven claims are eligible to receive payment through checks by mail or other arrangements that may be required by the trustee.
“If your claim is noted as a Disputed Claim on the attached dividend sheet, please refer to and respond to the Notice of Revision or Disallowance sent to you or otherwise contact the Trustee. No distribution will be paid on account of Disputed Claims unless and until such dispute is resolved and the claim is admitted as an Accepted Claim.”
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