Bankrupt QuadrigaCX Exchange to Commence ‘Interim Distribution’ of Funds
The bankrupt Canadian crypto exchange QuadrigaCX is set to commence an “interim distribution” of funds to creditors, despite only a fraction of the missing funds being recovered.
“In the coming weeks, the Trustee intends to post a Notice to Affected Users providing details about the manner and procedure for the Interim Distribution and other related information,” a status update from law firm Miller Thomson said on Monday this week.
According to the update, a small number of QuadrigaCX users will also receive a “Notice of Disallowance” from the bankruptcy trustee, informing them that their claims have been either revised (reduced) or disallowed (rejected).
Users who receive the Notice of Disallowance should check the update for further details on next steps to take.
CEO died under mysterious circumstances
QuadrigaCX filed for bankruptcy in Canada in 2018 after its CEO, Gerald Cotten, died under mysterious circumstances in India, taking the only known private keys to the exchange’s wallets with him.
The case has been much publicized in recent years, and was the subject of a popular 2022 Netflix documentary.
And while some of the funds owed to the exchange’s customers will now be paid back, large amounts are still missing.
According to bankruptcy trustee Ernst & Young, only $34.3 million worth of crypto has so far been recovered from the estate.
The Ontario Securities Commission has in the past estimated that QuadrigaCX owes its customers $160 million.