QuadrigaCX Creditors to Receive 13% of Claims as ‘Interim Dividend’
Creditors of the bankrupt Canadian crypto exchange QuadrigaCX are set to receive 13% of their total claims as part of an “interim dividend.”
A Glimmer of Hope for QuadrigaCX’s Creditors
According to a May 12 notice to creditors from QuadrigaCX’s bankruptcy trustee Ernst & Young (EY), each “creditor with a proven claim will receive 13.094156% of their proven claim less the levy amount payable to the Office of the Superintendent of Bankruptcy pursuant to the BIA.”
The Interim Dividend Distribution
“The interim dividend provides for a distribution of approximately 87.0% of the funds the Trustee is currently holding. The remaining funds will be held as a reserve for future disbursements related to the administration of the bankruptcy. A final distribution will be made at a later date,” EY added.
Claims Worth Millions
The notice indicates that there has been 305.6 million Canadian dollars ($223 million) worth of claims made by 17,648 creditors. According to EY, 15,356 creditors are owed between $0 to $10,000, while 1,784 are owed between $10,000 and $49,999. Just 15 creditors are owed more than $1 million, with the Canada Revenue Agency owed 11.7 million Canadian dollars in back taxes from 2016 to 2018.
Monetary Equivalent of Lost Crypto Assets
While former users of the exchange mostly held crypto assets at the time of the firm’s collapse in 2019, their claimed holdings were converted into the monetary value of the asset as of April 15 of that year.
Interim Dividend Amounts
If someone held 1 Bitcoin at the time, they would eventually get back 6,739 Canadian dollars ($4,933), with 13% of that soon coming as an interim dividend.
Awaiting the Interim Dividend Distribution
It has not been specified when the interim dividends will be distributed; however, Miller Thomson, the law firm representing the creditors, suggested on May 8 that it will happen over the next few weeks.
The Downfall of QuadrigaCX
QuadrigaCX was one of the largest crypto exchanges in Canada before it went insolvent in early 2019. Shortly after, its co-founder and CEO, Gerald Cotten, died in India, taking the private keys to QuadrigaCX’s offline storage systems to his grave.