QuadrigaCX Creditors Set To Receive 13% Of Their Claims As An ‘interim Dividend’

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Creditors of bankrupt Canadian cryptocurrency exchange QuadrigaCX will receive 13% of their total debt as part of an “interim dividend.”

According to information on May 12 news QuadrigaCX’s bankruptcy trustees, Ernst & Young (EY), have informed the creditors that “Each creditor with a proven claim shall be certified less the amount of the assessment payable to the Bankruptcy Supervisor’s Office under the BIA. You will receive 13.094156% of your claim.”

“The interim dividend will distribute approximately 87.0% of the funds currently held by the Trustees. Remaining funds are held as reserves for future expenditures related to bankruptcy administration. Final distribution will take place at a later date,” EY added.

The notice showed claims worth 305.6 million CDNs ($223 million) from 17,648 creditors.

According to EY, 15,356 creditors have debts between $0 and $10,000, and 1,784 have debts between $10,000 and $49,999.

d6a68733 a4f9 4a57 bb1a 95ec9ea5db0a — *Breakdown of value owed to creditors.Source: Ernst & Young*

With just 15 creditors owing more than $1 million, the Canada Revenue Agency owed the equivalent of 11.7 million CDN in taxes from 2016 to 2018.

At the time of the company’s bankruptcy in 2019, the exchange’s former users mostly held crypto assets, but as of April 15, their claimed holdings were converted into monetary value of assets.

So if someone held 1 Bitcoin (BTC) at the time, they would end up getting back 6,739 CDN ($4,933), of which 13% will be paid out soon as an interim dividend.

ba6a7534 ab77 467f b53f a6961f39b7f7 — *Crypto value as of April 15, 2019. Source: Ernst & Young*

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It is unclear when the interim dividend will be distributed, but law firm Miller-Thomson, which represents the creditors, suggested on May 8 that it would be in the next few weeks.

QuadrigaCX was one of Canada’s largest cryptocurrency exchanges until it went bankrupt in early 2019. Shortly after, co-founder and CEO Gerald Cotten died in India, leaving QuadrigaCX’s offline storage of his system’s private keys sent to the grave.

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