- QuadrigaCX creditors are set to get a 13% payout from the bankrupt exchange
- The exchange filed for bankruptcy in 2019 following the death of its co-founder
- The payouts represent 87% of the money available to administrators
Victims of the QuadrigaCX collapse are to receive 13% of their claims as the first tranche of payments are made by bankruptcy administrators. The Canadian exchange collapsed in 2019 following the alleged death of its co-founder Gerald Cotten the prior year, with the subsequent scandal over the mismanagement of the exchange making it all the way to a Netflix documentary. Now, creditors will get their first payouts, with the valuations pegged at April 15, 2019 market prices, the time when the exchange formally entered bankruptcy. Bitcoin claims will get CAD $6,739.08 ($7,122.9) per bitcoin, while ether holders will get CAD $223.45 ($299.45) per coin.
QuadrigaCX’s Twisted Tale
QuadrigaCX shut its doors in early 2019 when Cotten’s wife, Jennifer Robertson, announced that he had died the prior month, a move that set in motion a timeline of amazing and shocking twists, turns, and revelations. While all the factual evidence suggests that Cotten died in India of complications with Chron’s disease as officially stated, it was determined in the months after his death that he had been leverage trading with customers’ money and that the wallets that were supposed to contain the exchange’s funds had been emptied in the months before his death.
This led to intense speculation that he had in fact absconded with what remained of the funds, with the story being turned first into a podcast series and then a Netflix documentary. Both of these concluded that the likelihood was that Cotten had indeed died, leaving QuadrigaCX customers facing an anxious wait to see what of their funds they would get back.
EY Ey Paying Out Almost All of Its Reserves
Documents from administrator EY show that Quadriga’s estate owes CAD $303.1 million ($222.3 million) across 17,648 claims from creditors, including Canada Post and the country’s tax authority, Canada Revenue Agency (QuadrigaCX had not reported income during its 2016-2018 fiscal years and subsequently owes $11.7 million in back taxes).
According to the filing, “each creditor with a proven claim will receive 13.094156% of their proven claim”, with the total representing 87% of the money that EY has at its disposal. It seems then that this is the best that QuadrigaCX creditors can hope for, with little more to come after this interim payment.
