The creditors will be compensated with a monetary amount equivalent to the value of their lost cryptocurrency assets as of April 15, 2019.
Creditors of QuadrigaCX, the bankrupt Canadian crypto exchange, will be paid an “interim dividend” amounting to 13% of their total claims. Ernst & Young (EY), the bankruptcy trustee overseeing the process, informed the creditors of this development through a notice on May 12.
Each creditor with a valid claim will receive 13.094156% of their claim amount, after deducting the levy owed to the Office of the Superintendent of Bankruptcy as per the Bankruptcy and Insolvency Act (BIA).
According to Ernst & Young (EY), the bankruptcy trustee for QuadrigaCX, the interim dividend represents approximately 87% of the funds currently held by the trustee. The remaining funds will be kept as a reserve for future payments related to the bankruptcy administration.
EY stated that a final distribution of funds will occur at a later time. The notice also reveals that creditors have submitted claims totaling 305.6 million CDN ($223 million), with 17,648 creditors involved in the process.
EY has provided information stating that out of the total number of creditors, 15,356 are owed amounts ranging from $0 to $10,000, while 1,784 creditors are owed amounts between $10,000 and $49,999.
Breakdown of value owed to creditors. Source: cointelegraph
Only 15 creditors are owed over $1 million, and the Canada Revenue Agency is owed a sum of 11.7 million CDN for unpaid taxes from 2016 to 2018.
When the QuadrigaCX exchange collapsed in 2019, its former users held cryptocurrency assets. However, their claimed holdings were converted into their corresponding monetary values as of April 15, 2019.
For example, if someone owned 1 Bitcoin (BTC) valued at $26,778 at the time of the QuadrigaCX collapse, they would eventually receive 6,739 CDN ($4,933) in return. A portion of this, 13%, will be given as an interim dividend in the near future.
Crypto value as April 15 2019. Source: cointelegraph
The exact date for the distribution of the interim dividends has not been provided. However, Miller Thomson, the law firm representing the creditors, mentioned on May 8 that it is expected to take place in the next few weeks.
QuadrigaCX was once a major cryptocurrency exchange in Canada but faced financial difficulties and eventually became unable to pay its debts in early 2019. The situation worsened when the co-founder and CEO, Gerald Cotten, passed away in India. Unfortunately, Cotten had exclusive access to the offline storage systems where QuadrigaCX held its customers’ digital assets, resulting in their loss.
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