QuadrigaCX clients to receive at most 17 cents per dollar

The trustee of the liquidated cryptocurrency exchange QuadrigaCX holds about $29.8 million to distribute among 17,053 claimants who filed requests for refunds. The total of their claims is $171.5 million.

New report from EY #Quadriga Trustee is out & provides bankruptcy updates, incl. on claims that came forward:
🔸17,053 claims forms
🔸Current value of lost funds is approaching US$500 million

All EY reports are here: https://t.co/1ry7v9dRpu https://t.co/pvX80WvKWQ pic.twitter.com/6mBbRmYugg

— Mags (@Crypto_Mags) November 5, 2020

These data are contained in EY’s seventh report to the Ontario Superior Court, with EY acting as trustee.

EY concluded that Cotten traded the funds of 76,000 exchange customers, contributing to the divergence between assets and liabilities.

“Mr. Cotten used the real assets deposited by affected users for trading. For this reason, Quadriga’s assets probably never matched its liabilities to the affected users,” the firm explained.

The Ontario Securities Commission concluded in June 2020 that the bankruptcy was caused by the founder’s fraud.

EY asked the court to determine the date on which exchange rates were fixed — April 15, 2019, when Quadriga announced bankruptcy, or February 5, 2019, when users first faced fund freezes.

This will affect the total amount paid, which will be at least CAD 224.3 million ($171.5 million).

Volume of plaintiffs’ claims in the QuadrigaCX case. Source: EY.

The trustee urged the court to consider all submitted filings, despite about a third containing minor errors. EY believes this will speed up the process and not make it more burdensome.

As reported, the court case to protect Quadriga from creditors has been ongoing since February last year. A month earlier, the platform announced the sudden death of its CEO and president Gerald Cotten, whose passing allegedly led to the loss of access to the exchange’s cold wallets.

ForkLog has extensive coverage of these dramatic events.

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