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?

Other Questions People Ask

What is the interim distribution of funds for the bankrupt crypto exchange QuadrigaCX?

The interim distribution of funds for the bankrupt crypto exchange QuadrigaCX refers to the planned release of funds to affected users as part of the bankruptcy proceedings. According to Miller Thomson, this distribution will be scheduled in the coming weeks, and details will be provided in a Notice to Affected Users. This process is overseen by bankruptcy trustee Ernst & Young, who is working with estate inspectors to ensure proper distribution.

How will affected users be notified about the interim distribution from QuadrigaCX?

Affected users of the bankrupt crypto exchange QuadrigaCX will receive a Notice to Affected Users that outlines the details regarding the interim distribution of funds. This notice will include information about the method and procedure for the distribution. Additionally, some users may receive a Notice of Disallowance of Claim if their claims have been revised or prohibited, which they can appeal by reviewing the reasons provided.

What should users do if they receive a Notice of Disallowance from QuadrigaCX?

If users receive a Notice of Disallowance from the bankrupt crypto exchange QuadrigaCX, they should first evaluate the reasons for the modification or disallowance of their claim. It is important to gather any necessary evidence that supports their claim to appeal the decision effectively. The trustee is likely to issue this notice if there are discrepancies in the evidence submitted, so addressing these issues promptly is crucial for users seeking to recover their funds.

What led to the bankruptcy of QuadrigaCX and its impact on users?

The bankruptcy of QuadrigaCX was primarily triggered by the death of its co-founder Gerald Cotten in February 2019, who took with him the private keys to the exchange's offline storage systems. This incident left users unable to access their funds, leading to an estimated $160 million owed to affected customers. The Ontario Securities Commission has indicated that Cotten also incurred significant trading losses, further complicating the financial situation for users relying on the exchange.

What has been recovered from QuadrigaCX's bankruptcy proceedings so far?

As part of the bankruptcy proceedings for QuadrigaCX, trustee Ernst & Young has successfully recovered approximately $34.3 million worth of assets. However, the Ontario Securities Commission has stated that no additional assets beyond those identified by Ernst & Young have been recognized. This recovery is part of the ongoing efforts to distribute funds to affected users as they navigate the complexities of the bankruptcy process.