QuadrigaCX creditors are expected to receive 13% of their claims as an interim dividend

[ad_1]

Creditors of bankrupt Canadian crypto exchange QuadrigaCX are set to receive 13% of their total claims as part of an interim dividend.

According to a May 12 notice to creditors from QuadrigaCX’s trustee in bankruptcy, Ernst & Young (EY), each creditor with a proven claim will receive 13.094156% of their proven claim less the amount of the levy payable to the Office of the Superintendent of Bankruptcy pursuant to at the LFI. .

The interim dividend provides for a distribution of approximately 87.0% of the funds currently held by the trustee. 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.

The notice says there have been CDN 305.6 million ($223 million) in claims made by 17,648 creditors.

According to EY, 15,356 creditors are owed between $0 and $10,000, while 1,784 are owed between $10,000 and $49,999.

Breakdown of value due to creditors. Source: Ernst & Young

Only 15 creditors owe more than $1 million, with the Canada Revenue Agency owing C$11.7 million in back taxes from 2016 to 2018.

While former users of the exchange mostly held crypto assets at the time of the corporate collapse in 2019, their claimed holdings were converted to the monetary value of the asset as of April 15 this year.

As such, if someone held 1 Bitcoin (BTC) at the time, they would end up recouping CDN 6,739 ($4,933), of which 13% was in the form of an interim dividend.

Crypto value as of April 15, 2019. Source: Ernst & Young

Related: Binance Leaves Canada, Blames New Rules

It has not been specified when the interim dividends will be distributed, but Miller Thomson, the law firm representing the creditors, hinted on May 8 that it would be in the coming weeks.

QuadrigaCX was one of the largest crypto exchanges in Canada before going insolvent in early 2019. Shortly after co-founder and CEO Gerald Cotten died in India, taking the private keys to offline storage systems from QuadrigaCX in his grave.

Magazine: Magazine: $3.4 Billion Bitcoin in a Popcorn Box The Story of the Silk Road Hackers

[ad_2]