The law company that represents the users of the bankrupt cryptocurrency exchange QuadrigaCX, Miller Thomson, stated on May 8 that the interim distribution of funds linked to the bankruptcy procedures is planned to happen in the next few weeks. Despite the efforts of the bankruptcy administrators of QuadrigaCX, they were only able to return a fraction of the $160 million owements that was supposed to reach the creditors.
Erns &Young State that the Interim Distribution will Happen
After consultation with estate inspectors, bankruptcy administrator Ernst&Young stated that the interim distribution will happen in the future. In just a few weeks’ notice, the administrator will post a notice to the affected user base in regards to the process of this distribution. According to Miller Thomson, few users are going to receive a claim dismissal notice for the rejection of their claims over the bankruptcy process.
Miller Thomson states: “If you’ve received a Notice of Rejection, you have the right to appeal the decision. The first step is to review the reasons for the review or rejection and gather all the necessary evidence to support your claim. In this case, the trustee is more likely to have issued a Notice of Rejection if there was a discrepancy in your proof of claim.”
QuadrigaCX met its Demise after the Passing of Gerald Cotten
Canada’s once biggest and most popular cryptocurrency exchange, QuadrigaCX, declared bankruptcy in February 2019. This happened after the death of its CEO in India, Gerald Cotten. He had all the private keys to QuadrigaCX’s offline storage systems and was lost with him. This made the retrieval process impossible for the firm. QuadrigaCX, according to the Ontario Securities and Exchange Commission (OSC), has a total liability of around $160 million towards its clients at the moment. Besides losing access to the cold storage of the firm, OSC claims that Cotten also lost $86 million from crypto trading on the QuadrigaCX platform, which was covered by the funds of its user base.
Since all these events, bankruptcy administrator Ernst&Young has recovered $34.3 million in assets from the QuadrigaCX platform. “We have not identified any assets other than those identified by Ernst&Young,” the OSC stated.
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