Bankrupt crypto exchange QuadrigaCX to start ‘interim distribution’ of funds
According to a May 8 post by Miller Thomson, the law office representing users of the defunct cryptocurrency exchange QuadrigaCX, interim circulation of funds connected to personal bankruptcy procedures will be scheduled “in the coming weeks.”Bankruptcy trustee Ernest & & Young announced the interim circulation in consultation with estate inspectors. In the near future, the trustee will post a Notice to Affected Users regarding information about the way and procedure of the circulation. According to Miller Thomson, a small number of impacted users are anticipated to get a Notice of Disallowance of Claim, which indicates that the lenders claim has actually been revised or prohibited in the insolvency process. “If you got a Notice of Disallowance, you can appeal the decision,” Miller Thomson described, adding: “The very first action is to evaluate the reasons for the modification or disallowance and gather any essential proof to support their claim. In this case, the Trustee is more than likely to have provided a Notice of Disallowance if there was a disparity in your evidence of claim.”QuadrigaCX, once the biggest cryptocurrency exchange in Canada, ended up being insolvent in February 2019, quickly after its co-founder Gerald Cotten passed away in India, taking the private secrets to QuadrigaCXs offline storage systems to his tomb. According to the Ontario Securities Commission (OSC), QuadrigaCX owes its affected customers an estimated $160 million. In addition to losing access to cold storage, the OSC declares that Cotten realized $86 million in crypto trading losses on the QuadrigaCX platform, which was then covered with users funds. Ever since, bankruptcy trustee Ernest & & Young has recovered $34.3 million worth of possessions. “We did not recognize any other properties beyond those identified by Ernst & & Young,” composed the OSC.Distribution of funds located in QuadrigaCX personal bankruptcy procedures with quantities in Canadian dollars. Source: OSCMagazine: Can you rely on crypto exchanges after the collapse of FTX?
