By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
8
Notification Show More
Videos
Stocks pop on Japan trade deal news, Big Tech earnings expectations
14 hours ago
Videos
How The U.S. Became So Dependent On SpaceX
15 hours ago
News
John Hancock Alternative Asset Allocation Fund Q2 2025 Commentary (Mutual Fund:JAAAX)
15 hours ago
Videos
President Trump delivers remarks on AI
2 days ago
Videos
Why high earners still feel broke
2 days ago
News
FFLC: Measured Exposure For Growth With Valuation Discipline (BATS:FFLC)
2 days ago
Videos
Alphabet earnings beat expectations, Tesla misses on earnings and revenue
3 days ago
Videos
Why Texas Instruments Is Betting $60 Billion On Making Cheap Chips In The U.S.
3 days ago
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Markets > Crypto > Crypto Exchange QuadrigaCX Former Users Set to Receive 13% on the Dollar in Bankruptcy Proceedings
Crypto

Crypto Exchange QuadrigaCX Former Users Set to Receive 13% on the Dollar in Bankruptcy Proceedings

News Room
Last updated: 2023/05/14 at 6:02 AM
By News Room
Share
3 Min Read
SHARE

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 Operated a Ponzi Scheme

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 officially concluded that Quadriga was indeed a fraud and a Ponzi scheme by June 2020. 

It stated that Cotten committed fraud by opening accounts under aliases and crediting himself with fictitious currency and crypto asset balances, which he traded with unsuspecting clients, and that “What happened at Quadriga was an old-fashioned fraud wrapped in modern technology.”

The case has been much publicized in recent years, and was the subject of a popular 2022 Netflix documentary.

While some of the funds owed to the exchange’s customers will now be paid back, large amounts are still missing.

According to bankruptcy trustee Ernst & Young, only $34.3 million worth of crypto has so far been recovered from the estate.

Cryptocurrency tracking firm Chainalysis said back in 2019 that either the funds were never received or quickly went missing. 

“What Quadriga really did with the money that customers gave it to buy Bitcoin remains a mystery,” the company said in a statement to Fortune. 

 

Read the full article here

News Room May 14, 2023 May 14, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Stocks pop on Japan trade deal news, Big Tech earnings expectations

Watch full video on YouTube

How The U.S. Became So Dependent On SpaceX

Watch full video on YouTube

John Hancock Alternative Asset Allocation Fund Q2 2025 Commentary (Mutual Fund:JAAAX)

This article was written byFollowA company of Manulife Investment Management, John Hancock…

President Trump delivers remarks on AI

Watch full video on YouTube

Why high earners still feel broke

Watch full video on YouTube

- Advertisement -
Ad imageAd image

You Might Also Like

Crypto

'Fundamental Shift' in Traditional Bitcoin Market Cycle May Be on the Horizon

By News Room
Crypto

FTX/Alameda Unstakes Over $1B in Solana – Is a Major Price Shift Coming?

By News Room
Crypto

Mastercard Launches “Crypto Credential” To Replace Wallet Addresses With Usernames

By News Room
Crypto

Polygon Executive Pivots Roles To Developing ZK Proof Tech

By News Room
Crypto

Altcoin Interest Driving South Korean Crypto Craze – Report

By News Room
Crypto

Russian Central Bank Flags Sharp Rise in Crypto-related Activity

By News Room
Crypto

BitGo’s $100M Suit Against Galaxy Gets Green Light from Delaware Supreme Court

By News Room
Crypto

Here Are Your Top Crypto Gainers Today on DEXScreener

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?