Bankruptcy Trustee Ernst & Young Makes Progress in Repaying Creditors

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Creditors of the bankrupt Canadian cryptocurrency exchange QuadrigaCX are set to receive an interim dividend of 13% of their total claims. This is marking a significant milestone in the lengthy bankruptcy proceedings. 

QuadrigaCX was once a prominent cryptocurrency exchange in Canada until it went insolvent in early 2019. The sudden collapse came after the untimely death of the exchange’s co-founder and CEO, Gerald Cotten, who took the private keys to QuadrigaCX’s offline storage systems to his grave. This tragic event left 76,000 users with losses totaling about $200 million.

Ernst & Young (EY) has confirmed that each creditor with a proven claim will receive 13.094156% of it, less the levy amount payable to the Office of the Superintendent of Bankruptcy. The interim dividend represents approximately 87.0% of the funds currently held by the Trustee. 

Among the 17,648 creditors, 15,356 are owed amounts ranging from $0 to $10,000, while 1,784 are owed between $10,000 and $49,999. Notably, only 15 creditors have claims exceeding $1 million, with the Canada Revenue Agency being the largest creditor owed 11.7 million Canadian dollars in back taxes. 

Former users of QuadrigaCX had their claimed holdings, which mainly consisted of cryptocurrencies, converted into the monetary value of the assets as of April 15, 2019. For example, users who held 1 Bitcoin valued at $27,025 at the time can expect to receive 6,739 Canadian dollars ($4,933), with 13% of that amount coming as an interim dividend.

The notice to creditors did not specify when the interim dividends would be distributed, but Miller Thomson, the law firm representing the creditors, indicated that it would likely occur over the next few weeks. The remaining funds will be reserved for future disbursements related to the administration of the bankruptcy, with a final distribution to be made at a later date.

While the interim dividend represents only a fraction of their original investments in the exchange, it marks a significant step forward in the repayment process for QuadrigaCX’s creditors. After more than two years of waiting, any progress in resolving the bankruptcy is welcomed by those affected.

The first thing you should be aware of is crypto scams. There are a number of them, including fake crypto exchanges and online trading brokers.

Additionally, you should ensure that your digital coins are safely stored, preferably in cold wallets. Keep your keyphrase offline and enable 2FA whenever possible.

Finally, read the news about ongoing cryptocurrency fraud, so you’ll be able to recognize it. And, in case something goes wrong, seek help immediately.

The announcement of a 13% interim dividend for creditors of QuadrigaCX brings hope and progress to the long-running bankruptcy proceedings. Ernst & Young’s distribution of funds, representing approximately 87% of the funds currently held, is a positive development for the 17,648 creditors who collectively made claims worth $223 million. 

While the actual payout amounts may vary depending on individual claim details, the interim dividend provides some relief to those affected by the collapse of the Canadian cryptocurrency exchange.

This is official proof that getting money back from an exchange is possible as long as you provide sufficient evidence for a proven claim. You can contact Global Fraud Protection experts if you need assistance with the procedure.

The post Bankruptcy Trustee Ernst & Young Makes Progress in Repaying Creditors appeared first on Global Fraud Protection.


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