QuadrigaCX was once one of the largest cryptocurrency exchanges in Canada, but it all came crashing down in early 2019 when its founder and CEO, Gerald Cotten, passed away unexpectedly. Cotten was the only person who had access to the exchange’s cold wallets, which held the majority of its customers’ funds. As a result, QuadrigaCX was unable to access these funds and went bankrupt, leaving its customers with millions of dollars in losses.
Since then, the case has been ongoing, with creditors fighting for their claims to be paid out. In a recent development, it was announced that QuadrigaCX’s creditors will receive 13% of their claims, which is a significant improvement from the initial estimate of just 4%.
The payout is being made possible by the efforts of Ernst & Young (EY), the court-appointed monitor overseeing QuadrigaCX’s bankruptcy proceedings. EY has been working to recover as much of the exchange’s assets as possible, including selling off some of its remaining cryptocurrency holdings.
While 13% may not seem like a lot, it is important to note that this is a significant improvement from the initial estimate of just 4%. It also means that creditors will be receiving a total of approximately $30 million CAD, which is a substantial amount of money.
However, it is important to note that not all creditors will be receiving the same percentage of their claims. The payout will be based on a pro-rata basis, meaning that creditors with larger claims will receive a larger percentage of their claim than those with smaller claims.
Additionally, there are still some outstanding issues that need to be resolved before the payout can be made. For example, there are still ongoing legal battles over some of QuadrigaCX’s assets, including a yacht and several properties. These issues will need to be resolved before the payout can be made.
Overall, while the payout may not be as much as creditors had hoped for, it is still a significant improvement from the initial estimate. It also shows that EY is making progress in recovering as much of QuadrigaCX’s assets as possible, which is good news for creditors who have been waiting for over two years to receive their funds.
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- Source: Plato Data Intelligence: PlatoData