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QuadrigaCX Creditors to Get 13% Interim Dividend on Claims

Key Takeaways
  • QuadrigaCX creditors are to receive a 13% interim dividend on their claims, providing partial recovery.
  • Ernst & Young confirms the distribution of funds to 17,648 QuadrigaCX creditors.
  • Final distribution to be made at a later date, as bankruptcy proceedings continue.
13-May-2023 By: Aditi Tiwari
QuadrigaCX Creditors

Creditors of the defunct Canadian cryptocurrency exchange QuadrigaCX

are expected to receive an interim dividend of 13% of their total claims, according to the bankruptcy trustee Ernst & Young (EY). 

In a notice to creditors, EY stated that each creditor with a proven claim will receive 13.094156% of their claim amount after deducting the levy payable to the Office of the Superintendent of Bankruptcy.

The interim dividend, which accounts for approximately 87% of the funds currently held by the trustee, will be distributed to creditors, while the remaining funds will be reserved for future disbursements related to the bankruptcy administration. EY also mentioned that a final distribution would be made at a later date.

The notice revealed that a total of 17,648 creditors have submitted claims amounting to 305.6 million Canadian dollars ($223 million). Among the creditors, 15,356 are owed between $0 and $10,000, while 1,784 are owed between $10,000 and $49,999. Only 15 creditors are owed more than $1 million, with the Canada Revenue Agency being the largest creditor, owed 11.7 million Canadian dollars in back taxes.

When QuadrigaCX collapsed in 2019, most of its users held cryptocurrency assets. However, their claims were converted into the monetary value of the assets as of April 15, 2019. For instance, if a user held 1 Bitcoin at the time, which was worth $26,751, they will receive 6,739 Canadian dollars ($4,933), with 13% of that amount being distributed as an interim dividend.

Interim Dividend Distribution for QuadrigaCX Creditors Expected Soon

The exact timing of the interim dividend distribution has not been specified. However, the law firm representing the creditors, Miller Thomson, suggested that it is expected to occur within the next few weeks.

QuadrigaCX was once a prominent cryptocurrency exchange in Canada before it went insolvent in early 2019. The untimely death of its co-founder and CEO, Gerald Cotten, in India led to the loss of access to the exchange's offline storage systems, as Cotten held the private keys. This resulted in a significant loss of funds for QuadrigaCX's users, leading to a lengthy legal process and investigation.

The distribution of the interim dividend marks a step forward for the creditors of QuadrigaCX, providing them with a partial recovery of their claims. However, it is important to note that the final distribution and the ultimate recovery for creditors will depend on the outcome of the bankruptcy proceedings.

Also read- Bakkt Drops Majority of Tokens from Apex Crypto Platform in Delisting Move

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