Customers who lost cryptocurrency on the defunct Canadian exchange QuadrigaCX will get compensation equal to thirteen percent of the value of their holdings . QuadrigaCX, founded in 2013 by Gerald Cotten, was widely regarded as Canada’s biggest cryptocurrency exchange until it abruptly shut down in early 2019.
QuadrigaCX’s Users Will Get 13% of Their Funds
Each former user whose claim is validated will soon get a sum similar to 13,094156% of their credit, as stated in a document issued on May 12 for the creditors of QuadrigaCX by the platform’s liquidator.
Note that the value of the claimed holdings of former customers of the exchange who were mostly crypto-asset holders at the time of the company’s bankruptcy in 2019, was converted to the date of the month of April of that year .
If a customer had 1 Bitcoin on their account when QuadrigaCX went down, they would get a total of $6,739 CAD ($4,933), with an interim dividend of 13% due shortly . However the amount of the levy owed to the Office of the Superintendent of Bankruptcy must be subtracted from this total. The liquidation firm Ernst & Young offers the following in this regard:
Nearly 90% Of the Existing Holdings Will be Distributed
Approximately 87.0% of the liquidator’s existing holdings will be distributed via the interim dividend. The remaining balance will be set aside as a reserve for payments arising from the bankruptcy’s administration . Final distribution is scheduled at a later time.
According to the notification, nearly 17,648 creditors have lodged claims totaling C$305.6 million ($223 million). According to Ernst & Young 15,356 creditors will get zero dollars while 1,784 creditors will earn between ten thousand dollars and forty-nine thousand dollars and ninety-nine cents.
After a creditor protection order was obtained by the Supreme Court of Nova Scotia under the Companies Creditors Arrangement Act, the QuadrigaCX platform was shut down. While the Canada Revenue Agency stands to collect C$11.7 million in unpaid taxes from 2016-2018, just fifteen debtors stand to recover more than $1 million .