Quadriga CX Bankruptcy Claimants Will Receive a Payout of 13 Cents on the Dollar

EY, the prominent accounting firm, has issued a notice to creditors regarding the payout to former users of Quadriga CX - the Canadian cryptocurrency exchange that went bankrupt. According to the notice, these users can expect to receive a check that will cover 13% of their original claim.

EY's recent findings have shed light on the staggering debt owed by Quadriga's estate. The documents reveal that a whopping CAD $303.1 million ($222.3 million) is owed to a vast network of 17,648 creditors. Among these creditors are major institutions such as Canada Post and Canada Revenue Agency (CRA), indicating the severity of the situation.

Based on the filings, it has been revealed that there are 15 claims exceeding CAD $1 million in value, while 28 claims fall within the range of CAD $500,000 to CAD $999,999. Additionally, a staggering 15,236 claims have been reported to have a value under CAD $10,000.

EY reports that Quadriga was found by CRA to have not declared income for its fiscal periods between 2016 and 2018, resulting in a tax liability of $11.7 million for the company.

The payout in cryptocurrency will be determined by using the market prices on April 15, 2019 as the benchmark for the pegged values.

EY has stated that compensation for bitcoin claims will be calculated at a rate of CAD $6,739.08 ($7,122.9) per BTC, and compensation for Ethereum claims will be calculated at a rate of CAD $223.45 ($299.45) per ether.

Based on CoinCryptoUs market data, as of now, bitcoin is being traded at $26,737 and ether is being traded at $1,800.

Source Coindesk

Quadriga CX Bankruptcy Claimants Will Receive a Payout of 13 Cents on the Dollar

The Trustee in charge of the collapsed exchange's assets will allocate 87% of the funds currently held to distribute to users on an interim basis.