Former users of QuadrigaCX, a now-defunct Canadian cryptocurrency exchange, are set to receive 13% of their total claims, according to accounting firm Ernst & Young (EY). The exchange owes CAD $303.1 million ($222.3 million) across 17,648 claims, including claims from Canada Post and the Canada Revenue Agency.
The interim dividend will distribute approximately 87% of the funds currently held by the trustee, with the remaining funds reserved for future disbursements. The final distribution will occur at a later date.
QuadrigaCX sought bankruptcy protection in 2019 after its CEO, Gerald Cotten, died under mysterious circumstances, taking the exchange’s private keys with him. Subsequent investigations revealed fraudulent activities, including Cotten opening accounts under aliases and trading with customers’ assets. The Ontario Securities Commission concluded that QuadrigaCX was a Ponzi scheme.
Users’ cryptocurrency assets at the time of the collapse were converted into their monetary value as of April 15, 2019. EY stated that users with Bitcoin (BTC) claims will receive CAD $6,739.08 ($7,122.9) per coin, while Ethereum (ETH) claims will receive CAD $223.45 ($299.45) per ether.
Despite the upcoming repayments, significant amounts of funds are still missing. Only $34.3 million worth of cryptocurrency has been recovered from the estate, leaving the fate of the remaining funds a mystery. The case has garnered significant attention and was the subject of a popular Netflix documentary in 2022.
